Question

Problem 6-30 Coupon Rates (LO 2] You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate Maturity Mo/Yr May 30 Bid Asked 103.5475 103.6353 Ask Chg Yld +.3028 2219 May 35 104.4965 104.6422 +.4305 . ?? 6.302 6.168 May 45 ?? ?? ?? +.5418 +.5418 4.051 In the above table, find the Treasury bond that matures in May 2030. What is the coupon rate for this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate

Answer 1

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' v a 1x 2 ENG 07:47 27-03-2020 ... o X G828 X ✓ fx BA II PLUS 811 812 813 814 815 816 817 818 819 820 821 822 finding coupon rate first of all set C/Y = P/Y = then 823 824 825 826 827 828 N = I/Y= PV = FV = PMT 22 [11 X 2] 2.349 -1036.353 (103.6353% X 1000] 1000 13.630 [SEMI ANNUAL COUPON] CPT 829 ANNUAL COUPON 27.259 830 831 ANSWER COUPON RATE = 2.73% [27.259/1000] 832 833 834 02- ► NPV BOND Sheet6 Sheet4 PV FV | choice EAR nper WACC Sheet1 Sheet2 Sheet3 Sheet5 HERO WACC AFN ... + :