You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022 of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.202 6.158 Maturity Month/Year Bid May 36 103.4599 Asked 103.5327 May 39 May 45 104.4939 ?? 104.6396 ?? +.3287 +.4281 +.5392 Change Ask Yield 5.979 ?? 4.011 In the above table, find the Treasury bond that matures in May 2039. 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 %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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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
??
6.202
6.158
Maturity
Month/Year
May 36
May 39
May 45
Bid
103.4599
104.4939
??
Asked
103.5327
104.6396
??
Change Ask Yield
+.3287 5.979
+.4281
+.5392
??
4.011
In the above table, find the Treasury bond that matures in May 2039. 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 ?? 6.202 6.158 Maturity Month/Year May 36 May 39 May 45 Bid 103.4599 104.4939 ?? Asked 103.5327 104.6396 ?? Change Ask Yield +.3287 5.979 +.4281 +.5392 ?? 4.011 In the above table, find the Treasury bond that matures in May 2039. 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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