You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.424 6.183 Maturity Month/Year May 32 May 35 May 41 Bid 103.4664 104.5004 ?? Asked 103.5392 Change +.3067 Ask Yield 6.079 104.6461 ?? +.4341 +.5457 ?? 4.111 In the above table, find the Treasury bond that matures In May 2035. 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., 32.1 Yield to maturity %

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 20P
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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
??
5.424
6.183
Maturity
Month/Year
May 32
May 35
May 41
Bid
103.4664
104.5004
??
Asked
Change
103.5392
+.3067
104.6461
??
+.4341
+.5457
Ask Yield
6.079
??
4.111
In the above table, find the Treasury bond that matures In May 2035. 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.
Yield to maturity
96
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 ?? 5.424 6.183 Maturity Month/Year May 32 May 35 May 41 Bid 103.4664 104.5004 ?? Asked Change 103.5392 +.3067 104.6461 ?? +.4341 +.5457 Ask Yield 6.079 ?? 4.111 In the above table, find the Treasury bond that matures In May 2035. 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. Yield to maturity 96
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