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 ?? 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Bid 103.4560 104.4900 ?? Asked 103.5288 104.6357 ?? Change +.3248 +.4245 +.5353 Ask Yield 5.919 ?? 3.951 In the above table, find the Treasury bond that matures in May 2036. 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.
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 ?? 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Bid 103.4560 104.4900 ?? Asked 103.5288 104.6357 ?? Change +.3248 +.4245 +.5353 Ask Yield 5.919 ?? 3.951 In the above table, find the Treasury bond that matures in May 2036. 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.
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 20P
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Can you solve this problem using excel and its functions.
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
??
6.052
6.143
Maturity
Month/Year
May 33
May 36
May 42
Yield to maturity
Bid
103.4560
Asked
103.5288
104.4900 104.6357
??
??
In the above table, find the Treasury bond that matures in May 2036. 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.
Change Ask Yield
+.3248 5.919
??
+.4245
+.5353
3.951
%
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