Refer to Figure and look at the Treasury bond maturing in February 2036. a. How much would you have to pay to purchase one of these bonds? b. What is its coupon rate? c. What is the yield to maturity of the bond?
Refer to Figure and look at the Treasury bond maturing in February 2036. a. How much would you have to pay to purchase one of these bonds? b. What is its coupon rate? c. What is the yield to maturity of the bond?
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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Refer to Figure and look at the Treasury bond maturing in February 2036.
a. How much would you have to pay to purchase one of these bonds?
b. What is its coupon rate?
c. What is the yield to maturity of the bond?
Transcribed Image Text:LISTING OF TREASURY ISSUES
MATURITY COUPON BID
ASKED
CHANGE
15-Feb-2019 2.750 100.0391 100.0547 0.0078
30-Apr-2021 2.250 99.7500 99.7656 0.2344
15-May-2023 1.750 97.4531 97.4688 0.4766
15-Aug-2029 6.125 132.7266 132.7891 1.1406
15-Feb-2036 4.500 125.4688 125.5313
15-Aug-2048 3.000 101.8984 101.9297
1.5391
1.5391
Figure 2.3 Listing of Treasury bonds and notes
Source: The Wall Street Journal Online, January 3, 2019.
ASKED
YIELD TO
MATURITY
2.256
2.354
2.364
2.575
2.637
2.902
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