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 ?? 5.324 6.173 Maturity Month/Year May 38 Bid Asked 103.5488 103.5366 Change +.3041 May 43 May 53 104.4978 104.6435 ?? ?? +.4317 +.5431 Ask Yield 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2053. 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 .0538, 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. a. Asked price 1685.03.
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 ?? 5.324 6.173 Maturity Month/Year May 38 Bid Asked 103.5488 103.5366 Change +.3041 May 43 May 53 104.4978 104.6435 ?? ?? +.4317 +.5431 Ask Yield 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2053. 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 .0538, 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. a. Asked price 1685.03.
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
??
5.324
6.173
Maturity
Month/Year
May 38
Bid
103.5488
Asked
Change
103.5366
+.3041
May 43
May 53
104.4978
??
104.6435
??
+.4317
+.5431
Ask Yield
6.039
??
4.071
a. In the above table, find the Treasury bond that matures in May 2053. 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 .0538, 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.
a. Asked price
b. Bid price
1685.03.
1681.75.
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