
Essentials Of Investments
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ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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.
Asked
Rate
??question
mark
5.524
6.193
Maturity
Month/Year
May 34
May 37
May 43
Bid
103.4690
104.5030
??question
mark
103.5418
104.6487
??question
mark
Change
Ask
Yield
+.3093 6.119
+.4365
??
+.5483 4.151
In the above table, find the Treasury bond that matures in May 2037. What is
your yield to maturity if you buy this bond?
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