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 ?? 5.774 6.218 Maturity Month/Year May 37 May 42 Bid 103.5605 Asked 103.6487 Change +.3158 May 52 104.5095 104.6552 ?? ?? +.4425 +.5548 Ask Yield 2.549 ?? 4.251 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 2.63 %

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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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
??
5.774
6.218
Maturity
Month/Year
May 37
May 42
Bid
103.5605
Asked
103.6487
Change
+.3158
May 52
104.5095 104.6552
??
??
+.4425
+.5548
Ask Yield
2.549
??
4.251
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
2.63 %
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 ?? 5.774 6.218 Maturity Month/Year May 37 May 42 Bid 103.5605 Asked 103.6487 Change +.3158 May 52 104.5095 104.6552 ?? ?? +.4425 +.5548 Ask Yield 2.549 ?? 4.251 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 2.63 %
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