Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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![Problem 7-16 Using Treasury Quotes [LO2]
Locate the Treasury issue in Figure 7.5 maturing in August 2045. Assume a par value of
$10,000.
a. What is its coupon rate?
Note: Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.
b. What is its bid price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
c. What was the previous day's asked price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
a. Coupon rate
b. Bid price
c. Previous day's price
%](https://content.bartleby.com/qna-images/question/7244493e-0d49-402e-be96-186f2cb836c6/247caad3-09fe-4ee6-b39e-5ffd1dfe9a17/85t4d1n_processed.png)
Transcribed Image Text:Problem 7-16 Using Treasury Quotes [LO2]
Locate the Treasury issue in Figure 7.5 maturing in August 2045. Assume a par value of
$10,000.
a. What is its coupon rate?
Note: Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.
b. What is its bid price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
c. What was the previous day's asked price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.
a. Coupon rate
b. Bid price
c. Previous day's price
%
Transcribed Image Text:FIGURE 7.5 Sample Wall Street Journal U.S. Treasury Note and Bond Prices
Treasury Notes and Bonds
Asked
Maturity
Coupon
Bid
Asked
Chg
Yield
5/15/2025
2.750
96.150
96.154
-0.006
4.406
7/31/2026
0.625
88.270
88.274
-0.020
4.108
5/15/2027
2.375
93.206
93.212
-0.036
4.010
4/30/2028
1.250
87.142
87.152
-0.064
3.932
1/31/2029
1.750
88.200
88.210
-0.080
3.900
11/15/2030
0.875
80.294
80.304
-0.788
3.727
2/15/2031
1.125
82.170
82.180
-0.102
3.657
5/15/2032
2.875
93.066
93.076
-0.136
3.746
11/15/2032
4.125
102.312
103.002
-0.834
3.753
2/15/2036
4.500
108.180
108.190
-0.910
3.663
2/15/2037
4.750
111.116
111.126
-0.940
3.700
2/15/2038
4.375
106.284
106.294
-0.942
3.729
5/15/2038
4.500
108.084
108.094
-0.946
3.767
8/15/2039
4.500
108.156
108.166
-0.974
3.779
8/15/2040
3.875
100.056
100.066
-0.966
3.858
11/15/2040
1.375
67.042
67.052
-0.210
3.970
2/15/2041
4.750
111.270
111.280
-0.962
3.831
8/15/2041
3.750
97.300
97.310
-0.944
3.905
2/15/2042
3.125
88.290
88.300
-0.920
3.959
5/15/2042
3.000
86.310
87.000
-0.912
3.972
2/15/2043
3.125
88.054
88.064
-0.248
3.986
5/15/2044
3.375
91.040
91.050
-0.274
3.996
8/15/2045
2.875
83.114
83.124
-0.966
4.001
2/15/2046
2.500
77.220
77.230
-0.954
3.989
8/15/2047
2.750
81.052
81.062
-1.000
3.955
11/15/2048
3.375
91.110
91.120
-1.034
3.909
8/15/2049
2.250
73.024
73.034
-1.002
3.884
5/15/2050
1.250
56.144
56.154
-0.946
3.839
2/15/2051
1.875
66.104
66.114
-0.968
3.848
11/15/2052
4.000
103.110
103.130
-1.074
3.807
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