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 ?? 5.574 6.198 Maturity Month/Year May 29 May 32 May 38 Bid Asked Change +.3106 103.4703 103.5431 104.5043 104.6500 +.4377 ?? ?? +.5496 Ask Yield 6.139 ?? 4.171 In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond?
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 ?? 5.574 6.198 Maturity Month/Year May 29 May 32 May 38 Bid Asked Change +.3106 103.4703 103.5431 104.5043 104.6500 +.4377 ?? ?? +.5496 Ask Yield 6.139 ?? 4.171 In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond?
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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![Problem 6-28 Bond Yields [LO 2]
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
??
5.574
6.198
Maturity
Month/Year
May 29
May 32
May 38
Yield to maturity
Bid
Asked
103.4703 103.5431
104.5043 104.6500
??
??
Change
+.3106
+.4377
+.5496
In the above table, find the Treasury bond that matures in May 2032. 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.
%
Ask Yield
6.139
??
4.171](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97c833d3-edbe-4360-aea5-009234e7ac48%2Ff368f24d-835f-43ce-9112-29cd0856623a%2Fiaaylf_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 6-28 Bond Yields [LO 2]
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
??
5.574
6.198
Maturity
Month/Year
May 29
May 32
May 38
Yield to maturity
Bid
Asked
103.4703 103.5431
104.5043 104.6500
??
??
Change
+.3106
+.4377
+.5496
In the above table, find the Treasury bond that matures in May 2032. 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.
%
Ask Yield
6.139
??
4.171
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