You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.374 6.178 Maturity Month/Year a. Asked price b. Bid price May 29 May 34 May 44 Asked Bid 103.5501 103.5379 104.4991 104.6448 ?? ?? Change +.3054 +.4329 +.5444 Ask Yield 6.059 ?? 4.091 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? Note: 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 .0545, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.374 6.178 Maturity Month/Year a. Asked price b. Bid price May 29 May 34 May 44 Asked Bid 103.5501 103.5379 104.4991 104.6448 ?? ?? Change +.3054 +.4329 +.5444 Ask Yield 6.059 ?? 4.091 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? Note: 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 .0545, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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:You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All
of the bonds have a par value of $1,000 and pay semiannual coupons.
Rate
??
5.374
6.178
Maturity
Month/Year
May 29
May 34
May 44
a. Asked price
b. Bid price
Bid
103.5501
104.4991 104.6448
??
??
Asked
103.5379
Change
+.3054
+.4329
+.5444
Ask Yield
6.059
??
4.091
a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars?
Note: 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 .0545, what is the bid price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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