To calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1,000 par value and pay semiannual coupons. Maturity Mo/Yr Ask Yld Rate Bid 103.5362 103.8235 Chg +.3204 Asked ?? May 25 2.18 103.1840 103.3215 5.850 May 27 +.4513 ?? 6.125 May 36 ?? ?? +.6821 3.87 a. In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the bid-ask spread for this bond is .0628, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Asked price b. Bid price a.
To calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1,000 par value and pay semiannual coupons. Maturity Mo/Yr Ask Yld Rate Bid 103.5362 103.8235 Chg +.3204 Asked ?? May 25 2.18 103.1840 103.3215 5.850 May 27 +.4513 ?? 6.125 May 36 ?? ?? +.6821 3.87 a. In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the bid-ask spread for this bond is .0628, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Asked price b. Bid price a.
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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Transcribed Image Text:To calculate the number of years until maturity, assume that it is currently May 2019. All
of the bonds have a $1,000 par value and pay semiannual coupons.
Maturity
Mo/Yr
Ask
Yld
Rate
Asked
103.5362 103.8235
Bid
Chg
+.3204
??
May 25
2.18
5.850
May 27
103.1840 103.3215
+.4513
??
6.125
May 36
??
??
+.6821
3.87
a. In the above table, find the Treasury bond that matures in May 2036. What is the
asked price of this bond in dollars? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
b. If the bid-ask spread for this bond is .0628, what is the bid price in dollars? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
a.
Asked price
b. Bid price
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