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 Maturity Month/Year ?? May 31 5.374 6.178 May 34 May 40 Bid 103.4651 104.4991 ?? Asked 103.5379 104.6448 ?? Change +.3054 +.4329 +.5444 Ask Yield 6.059 ?? 4.091 In the above table, find the Treasury bond that matures in May 2034. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 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
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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
Maturity
Month/Year
??
May 31
5.374
6.178
May 34
May 40
Bid
103.4651
104.4991
??
Asked
103.5379
104.6448
??
Change
+.3054
+.4329
+.5444
Ask Yield
6.059
??
4.091
In the above table, find the Treasury bond that matures in May 2034. What is your yield to maturity if you buy this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Yield to maturity
%
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 Maturity Month/Year ?? May 31 5.374 6.178 May 34 May 40 Bid 103.4651 104.4991 ?? Asked 103.5379 104.6448 ?? Change +.3054 +.4329 +.5444 Ask Yield 6.059 ?? 4.091 In the above table, find the Treasury bond that matures in May 2034. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity %
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