Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Mansukhbhai 

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
??
5.524
6.193
Maturity
Month/Year
May 32
May 37
May 47
Bid
Asked
103.5418 103.5540
104.5030 104.6487
??
??
a. In the above table, find the Treasury bond that matures in May 2047. 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 .0566, 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.
X Answer is complete but not entirely correct.
a. Asked price
b. Bid price
$
$
Change Ask Yield
+.3093 6.119
+.4365
??
+.5483
4.151
815.17 X
751.47
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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 ?? 5.524 6.193 Maturity Month/Year May 32 May 37 May 47 Bid Asked 103.5418 103.5540 104.5030 104.6487 ?? ?? a. In the above table, find the Treasury bond that matures in May 2047. 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 .0566, 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. X Answer is complete but not entirely correct. a. Asked price b. Bid price $ $ Change Ask Yield +.3093 6.119 +.4365 ?? +.5483 4.151 815.17 X 751.47
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