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 ?? 5.374 6.178 Maturity Month/Year May 31 May 34 May 40 Yield to maturity Bid 103.4651 104.4991 ?? Asked 103.5379 104.6448 ?? % Change +.3054 +.4329 +.5444 In the above table, find the Treasury bond that matures in May 2034. What is your yield to maturit 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 6.059 ?? 4.091
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 ?? 5.374 6.178 Maturity Month/Year May 31 May 34 May 40 Yield to maturity Bid 103.4651 104.4991 ?? Asked 103.5379 104.6448 ?? % Change +.3054 +.4329 +.5444 In the above table, find the Treasury bond that matures in May 2034. What is your yield to maturit 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 6.059 ?? 4.091
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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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 semi annual coupons. In the table, find the Treasury bond that matures in May 2034. What is your yield to maturity if you buy this bond?
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
??
5.374
6.178
Maturity
Month/Year
May 31
May 34
May 40
Yield to maturity
Bid
Asked
103.4651 103.5379
104.4991 104.6448
??
??
Change
+.3054
+.4329
+.5444
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.
%
Ask Yield
6.059
??
4.091
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