You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 202 of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.324 6.173 Maturity Month/Year May 30 May 33 May 39 Asked Bid 103.4638 103.5366 104.4978 104.6435 ?? ?? Yield to maturity Change Ask Yield +.3041 6.039 ?? 4.071 In the above table, find the Treasury bond that matures in May 2033. 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. +.4317. +.5431 Answer is complete but not entirely correct. 8.28 %
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 202 of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.324 6.173 Maturity Month/Year May 30 May 33 May 39 Asked Bid 103.4638 103.5366 104.4978 104.6435 ?? ?? Yield to maturity Change Ask Yield +.3041 6.039 ?? 4.071 In the above table, find the Treasury bond that matures in May 2033. 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. +.4317. +.5431 Answer is complete but not entirely correct. 8.28 %
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 semiannual coupons.
Rate
??
5.324
6.173
Maturity
Month/Year
May 30
May 33
May 39
Bid
Asked
103.4638 103.5366
104.4978 104.6435
??
??
Change Ask Yield
+.3041
+.4317
+.5431
In the above table, find the Treasury bond that matures in May 2033. 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.
X Answer is complete but not entirely correct.
Yield to maturity
8.28 %
6.039
??
4.071
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