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 ?? 6.052 6.143 Maturity Month/Year May 32 May 37 May 47 a. Asked price b. Bid price Asked Bid 103.5410 103.5288 104.4900 104.6357 ?? Change Ask Yield +.3248 +.4245 +.5353 5.919 ?? 3.951 a. In the above table, find the Treasury bond that matures in May 2047. 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 .0641, 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 ?? 6.052 6.143 Maturity Month/Year May 32 May 37 May 47 a. Asked price b. Bid price Asked Bid 103.5410 103.5288 104.4900 104.6357 ?? Change Ask Yield +.3248 +.4245 +.5353 5.919 ?? 3.951 a. In the above table, find the Treasury bond that matures in May 2047. 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 .0641, 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
??
6.052
6.143
Maturity
Month/Year
May 32
May 37
May 47
a. Asked price
b. Bid price
Bid
103.5410
Asked
103.5288
104.4900 104.6357
??
??
Change
+.3248
+.4245
+.5353
Ask Yield
5.919
??
3.951
a. In the above table, find the Treasury bond that matures in May 2047. 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 .0641, 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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