Refer to this chart and look at the Treasury bond maturing in March 2022. Required: How much would you have to pay to purchase one of these bonds? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. What is its coupon rate? Note: Round your answer to 3 decimal places. What is the yield to maturity of the bond? Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Refer to this chart and look at the Treasury bond maturing in March 2022. Required: How much would you have to pay to purchase one of these bonds? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. What is its coupon rate? Note: Round your answer to 3 decimal places. What is the yield to maturity of the bond? Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
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
Refer to this chart and look at the Treasury bond maturing in March 2022.
Required:
-
How much would you have to pay to purchase one of these bonds?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
-
What is its coupon rate?
Note: Round your answer to 3 decimal places.
-
What is the yield to maturity of the bond?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Transcribed Image Text:MATURITY
15-November-21
31-March-22
15-May-25
15-February-36
15-November-40
15-May-51
LISTING OF TREASURY ISSUES
COUPON
2.000
1.750
2.125
4.500
4.250
2.375
BID
100.206
101.060
105.252
138.234
139.160
108.224
ASKED
100.212
101.064
105.256
138.244
139.180
108.244
CHANGE
-0.008
-0.006
0.058
0.960
0.158
1.128
ASKED YIELD TO
COUPON
MATURITY
0.013
0.056
0.592
1.525
1.815
1.984
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