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 ?? 6.302 6.168 Maturity Month/Year Coupon rate May 37 May 42 May 52 Bid 103.5475 104.4965 ?? Asked 103.6353 104.6422 ?? % Change +.3028 +.4305 +.5418 In the above table, find the Treasury bond that matures in May 2037. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Ask Yield 2.349 ?? 4.051
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 ?? 6.302 6.168 Maturity Month/Year Coupon rate May 37 May 42 May 52 Bid 103.5475 104.4965 ?? Asked 103.6353 104.6422 ?? % Change +.3028 +.4305 +.5418 In the above table, find the Treasury bond that matures in May 2037. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Ask Yield 2.349 ?? 4.051
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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am. 283.
![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 | Bid | Asked | Change | Ask Yield |
|-------|---------------------|---------|---------|--------|-----------|
| ?? | May 37 | 103.5475| 103.6353| +.3028 | 2.349 |
| 6.302 | May 42 | 104.4965| 104.6422| +.4305 | ?? |
| 6.168 | May 52 | ?? | ?? | +.5418 | 4.051 |
In the above table, find the Treasury bond that matures in May 2037. What is the coupon rate for this bond?
**Note:** Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Coupon rate: [ ] %
---
**Explanation:**
The table lists three Treasury bonds with different maturity dates, bid prices, asked prices, daily changes, and ask yields. The goal is to identify the bond maturing in May 2037 and calculate its coupon rate by analyzing the given data. Pay attention to how yields and rates are presented, and perform any necessary calculations accurately without early rounding.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0a6d064-d60f-4f54-aa81-ca6ff52cfb9a%2Fadd70823-64b3-4c5e-b4f0-dd6de43ddf0b%2Fjqsihzo_processed.png&w=3840&q=75)
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 | Bid | Asked | Change | Ask Yield |
|-------|---------------------|---------|---------|--------|-----------|
| ?? | May 37 | 103.5475| 103.6353| +.3028 | 2.349 |
| 6.302 | May 42 | 104.4965| 104.6422| +.4305 | ?? |
| 6.168 | May 52 | ?? | ?? | +.5418 | 4.051 |
In the above table, find the Treasury bond that matures in May 2037. What is the coupon rate for this bond?
**Note:** Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Coupon rate: [ ] %
---
**Explanation:**
The table lists three Treasury bonds with different maturity dates, bid prices, asked prices, daily changes, and ask yields. The goal is to identify the bond maturing in May 2037 and calculate its coupon rate by analyzing the given data. Pay attention to how yields and rates are presented, and perform any necessary calculations accurately without early rounding.
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