Problem 6-29 Bond Prices [LO 2]You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. Allof the bonds have a par value of $1,000 and pay semiannual coupons.Rate??5.3246.173MaturityMonth/YearMay 38May 43May 53BidAsked103.5366 103.5488104.4978 104.6435????a. Asked priceb. Bid priceChange Ask Yield+.3041+.4317+.54316.039??4.071a. 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.

Par value$1,000.00Coupon rate6.173%Compounding frequency2Current data2022Maturity…

Problem 6-29 Bond Prices [LO 2] 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 May 43 May 53 a. Asked price Bid 103.5366 Asked 103.5488 104.4978 104.6435 ?? ?? Change +.3041 +.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.

Problem 6-29 Bond Prices [LO 2] 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 May 43 May 53 a. Asked price Bid 103.5366 Asked 103.5488 104.4978 104.6435 ?? ?? Change +.3041 +.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.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 16PROB

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