Refer to Figure 2.3 and look at the Treasury bond maturing in May 2018. a. How much would you have to pay to purchase one of these bonds? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Price paid b. What is its coupon rate? (Round your answer to 3 decimal places.) Coupon rate % c. What is the yield to maturity of the bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity %
Refer to Figure 2.3 and look at the Treasury bond maturing in May 2018. a. How much would you have to pay to purchase one of these bonds? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Price paid b. What is its coupon rate? (Round your answer to 3 decimal places.) Coupon rate % c. What is the yield to maturity of the bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity %
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
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Question
Please answer all parts.
Transcribed Image Text:LISTING OF TREASURY ISSUES
ASKED YLD
MATURITY COUPON
BID
ASKED
CHG
то МАT
May 15, 2018 1.000 100.3984 100.4141
-0.0859
0.791
May 15, 2019 0.875
99.8125
99.8281
-0.0859
0.933
Feb 15, 2021 7.875
130.5781 130.5938
-0.2656
1.225
Aug 15, 2025 2.000
102.2813
102.2969
-0.3438
1.730
May 15, 2030
6.250
152.3984
152.4609
-0.7969
1.950
Nov 15, 2041
3.125
111.7891
111.8203
-0.8750
2.496
May 15, 2046 2.500
97.9922
98.0234
-0.9063
2.595
Figure 2.3 Listing of Treasury bonds and notes
Source: Compiled from data obtalned from The Wall Street Journal Online, May 16, 2016.
Transcribed Image Text:Refer to Figure 2.3 and look at the Treasury bond maturing in
May 2018.
a. How much would you have to pay to purchase one of these
bonds? (Do not round intermediate calculations. Round your
answer to 3 decimal places.)
Price paid
b. What is its coupon rate? (Round your answer to 3 decimal
places.)
Coupon rate
%
c. What is the yield to maturity of the bond? (Do not round
intermediate calculations. Round your answer to 3 decimal
places.)
Yield to maturity
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