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.

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
??
5.952
6.133
Maturity
Month/Year
May 31
May 34
May 40
Bid
Asked
103.4534 103.5262
104.4874 104.6331
??
??
Change Ask Yield
+.3222
+.4221
+.5327
5.879
??
3.911
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 ?? 5.952 6.133 Maturity Month/Year May 31 May 34 May 40 Bid Asked 103.4534 103.5262 104.4874 104.6331 ?? ?? Change Ask Yield +.3222 +.4221 +.5327 5.879 ?? 3.911 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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