Problem 7-16 Using Treasury Quotes [LO2] Locate the Treasury issue in Figure 7.5 maturing in August 2045. Assume a par value of $10,000. a. What is its coupon rate? Note: Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. b. What is its bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What was the previous day's asked price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Coupon rate b. Bid price c. Previous day's price % FIGURE 7.5 Sample Wall Street Journal U.S. Treasury Note and Bond Prices Treasury Notes and Bonds Asked Maturity Coupon Bid Asked Chg Yield 5/15/2025 2.750 96.150 96.154 -0.006 4.406 7/31/2026 0.625 88.270 88.274 -0.020 4.108 5/15/2027 2.375 93.206 93.212 -0.036 4.010 4/30/2028 1.250 87.142 87.152 -0.064 3.932 1/31/2029 1.750 88.200 88.210 -0.080 3.900 11/15/2030 0.875 80.294 80.304 -0.788 3.727 2/15/2031 1.125 82.170 82.180 -0.102 3.657 5/15/2032 2.875 93.066 93.076 -0.136 3.746 11/15/2032 4.125 102.312 103.002 -0.834 3.753 2/15/2036 4.500 108.180 108.190 -0.910 3.663 2/15/2037 4.750 111.116 111.126 -0.940 3.700 2/15/2038 4.375 106.284 106.294 -0.942 3.729 5/15/2038 4.500 108.084 108.094 -0.946 3.767 8/15/2039 4.500 108.156 108.166 -0.974 3.779 8/15/2040 3.875 100.056 100.066 -0.966 3.858 11/15/2040 1.375 67.042 67.052 -0.210 3.970 2/15/2041 4.750 111.270 111.280 -0.962 3.831 8/15/2041 3.750 97.300 97.310 -0.944 3.905 2/15/2042 3.125 88.290 88.300 -0.920 3.959 5/15/2042 3.000 86.310 87.000 -0.912 3.972 2/15/2043 3.125 88.054 88.064 -0.248 3.986 5/15/2044 3.375 91.040 91.050 -0.274 3.996 8/15/2045 2.875 83.114 83.124 -0.966 4.001 2/15/2046 2.500 77.220 77.230 -0.954 3.989 8/15/2047 2.750 81.052 81.062 -1.000 3.955 11/15/2048 3.375 91.110 91.120 -1.034 3.909 8/15/2049 2.250 73.024 73.034 -1.002 3.884 5/15/2050 1.250 56.144 56.154 -0.946 3.839 2/15/2051 1.875 66.104 66.114 -0.968 3.848 11/15/2052 4.000 103.110 103.130 -1.074 3.807
Problem 7-16 Using Treasury Quotes [LO2] Locate the Treasury issue in Figure 7.5 maturing in August 2045. Assume a par value of $10,000. a. What is its coupon rate? Note: Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. b. What is its bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What was the previous day's asked price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Coupon rate b. Bid price c. Previous day's price % FIGURE 7.5 Sample Wall Street Journal U.S. Treasury Note and Bond Prices Treasury Notes and Bonds Asked Maturity Coupon Bid Asked Chg Yield 5/15/2025 2.750 96.150 96.154 -0.006 4.406 7/31/2026 0.625 88.270 88.274 -0.020 4.108 5/15/2027 2.375 93.206 93.212 -0.036 4.010 4/30/2028 1.250 87.142 87.152 -0.064 3.932 1/31/2029 1.750 88.200 88.210 -0.080 3.900 11/15/2030 0.875 80.294 80.304 -0.788 3.727 2/15/2031 1.125 82.170 82.180 -0.102 3.657 5/15/2032 2.875 93.066 93.076 -0.136 3.746 11/15/2032 4.125 102.312 103.002 -0.834 3.753 2/15/2036 4.500 108.180 108.190 -0.910 3.663 2/15/2037 4.750 111.116 111.126 -0.940 3.700 2/15/2038 4.375 106.284 106.294 -0.942 3.729 5/15/2038 4.500 108.084 108.094 -0.946 3.767 8/15/2039 4.500 108.156 108.166 -0.974 3.779 8/15/2040 3.875 100.056 100.066 -0.966 3.858 11/15/2040 1.375 67.042 67.052 -0.210 3.970 2/15/2041 4.750 111.270 111.280 -0.962 3.831 8/15/2041 3.750 97.300 97.310 -0.944 3.905 2/15/2042 3.125 88.290 88.300 -0.920 3.959 5/15/2042 3.000 86.310 87.000 -0.912 3.972 2/15/2043 3.125 88.054 88.064 -0.248 3.986 5/15/2044 3.375 91.040 91.050 -0.274 3.996 8/15/2045 2.875 83.114 83.124 -0.966 4.001 2/15/2046 2.500 77.220 77.230 -0.954 3.989 8/15/2047 2.750 81.052 81.062 -1.000 3.955 11/15/2048 3.375 91.110 91.120 -1.034 3.909 8/15/2049 2.250 73.024 73.034 -1.002 3.884 5/15/2050 1.250 56.144 56.154 -0.946 3.839 2/15/2051 1.875 66.104 66.114 -0.968 3.848 11/15/2052 4.000 103.110 103.130 -1.074 3.807
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![Problem 7-16 Using Treasury Quotes [LO2]
Locate the Treasury issue in Figure 7.5 maturing in August 2045. Assume a par value of
$10,000.
a. What is its coupon rate?
Note: Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.
b. What is its bid price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
c. What was the previous day's asked price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
a. Coupon rate
b. Bid price
c. Previous day's price
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7244493e-0d49-402e-be96-186f2cb836c6%2F247caad3-09fe-4ee6-b39e-5ffd1dfe9a17%2F85t4d1n_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 7-16 Using Treasury Quotes [LO2]
Locate the Treasury issue in Figure 7.5 maturing in August 2045. Assume a par value of
$10,000.
a. What is its coupon rate?
Note: Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.
b. What is its bid price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
c. What was the previous day's asked price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
a. Coupon rate
b. Bid price
c. Previous day's price
%
Transcribed Image Text:FIGURE 7.5 Sample Wall Street Journal U.S. Treasury Note and Bond Prices
Treasury Notes and Bonds
Asked
Maturity
Coupon
Bid
Asked
Chg
Yield
5/15/2025
2.750
96.150
96.154
-0.006
4.406
7/31/2026
0.625
88.270
88.274
-0.020
4.108
5/15/2027
2.375
93.206
93.212
-0.036
4.010
4/30/2028
1.250
87.142
87.152
-0.064
3.932
1/31/2029
1.750
88.200
88.210
-0.080
3.900
11/15/2030
0.875
80.294
80.304
-0.788
3.727
2/15/2031
1.125
82.170
82.180
-0.102
3.657
5/15/2032
2.875
93.066
93.076
-0.136
3.746
11/15/2032
4.125
102.312
103.002
-0.834
3.753
2/15/2036
4.500
108.180
108.190
-0.910
3.663
2/15/2037
4.750
111.116
111.126
-0.940
3.700
2/15/2038
4.375
106.284
106.294
-0.942
3.729
5/15/2038
4.500
108.084
108.094
-0.946
3.767
8/15/2039
4.500
108.156
108.166
-0.974
3.779
8/15/2040
3.875
100.056
100.066
-0.966
3.858
11/15/2040
1.375
67.042
67.052
-0.210
3.970
2/15/2041
4.750
111.270
111.280
-0.962
3.831
8/15/2041
3.750
97.300
97.310
-0.944
3.905
2/15/2042
3.125
88.290
88.300
-0.920
3.959
5/15/2042
3.000
86.310
87.000
-0.912
3.972
2/15/2043
3.125
88.054
88.064
-0.248
3.986
5/15/2044
3.375
91.040
91.050
-0.274
3.996
8/15/2045
2.875
83.114
83.124
-0.966
4.001
2/15/2046
2.500
77.220
77.230
-0.954
3.989
8/15/2047
2.750
81.052
81.062
-1.000
3.955
11/15/2048
3.375
91.110
91.120
-1.034
3.909
8/15/2049
2.250
73.024
73.034
-1.002
3.884
5/15/2050
1.250
56.144
56.154
-0.946
3.839
2/15/2051
1.875
66.104
66.114
-0.968
3.848
11/15/2052
4.000
103.110
103.130
-1.074
3.807
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education