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 ?? 6.252 6.163 Maturity Month/Year a. Asked price b. Bid price May 36 May 41 May 51 Bid 103.5462 Asked 103.5340 104.4952 104.6409 ?? ?? Change +.3015 +.4293 +.5405 Ask Yield 5.999 ?? 4.031 a. In the above table, find the Treasury bond that matures in May 2051. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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 ?? 6.252 6.163 Maturity Month/Year a. Asked price b. Bid price May 36 May 41 May 51 Bid 103.5462 Asked 103.5340 104.4952 104.6409 ?? ?? Change +.3015 +.4293 +.5405 Ask Yield 5.999 ?? 4.031 a. In the above table, find the Treasury bond that matures in May 2051. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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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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
??
6.252
6.163
Maturity
Month/Year
May 36
May 41
May 51
a. Asked price
b. Bid price
Bid
Asked
103.5462
103.5340
104.4952 104.6409
??
??
Change Ask Yield
+.3015 5.999
+.4293
??
+.5405
4.031
a. In the above table, find the Treasury bond that matures in May 2051. What is the asked price of this bond in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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