Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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
??
5.724
6.213
Maturity
Month/Year
May 36
May 41
May 51
Bid
103.5592
104.5082
??
Asked
103.6474
104.6539
??
Change
+.3145
%
+.4413
+.5535
Ask Yield
2.529
??
4.231
In the above table, find the Treasury bond that matures in May 2036. What is the coupon rate for this
bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.
Coupon rate c
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