You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000.
Rate | Maturity Mo/Yr |
Bid | Asked | Chg | Ask Yld |
?? | May 23 | 103.5527 | 103.5405 | +.3080 | 6.099 |
5.474 | May 28 | 104.5017 | 104.6474 | +.4353 | ?? |
6.188 | May 38 | ?? | ?? | +.5470 | 4.131 |
In the above table, find the Treasury bond that matures in May 2038. What is the asked price of this bond in dollars?
Asked Price $______
If the bid-ask spread for this bond is .0559, what is the bid price in dollars?
Bid Price $_______
a). The coupon rate of the bond is 6.188 percent and the bond matures in 22 years. The bond coupon payments are semiannual, so the asked price is:
P = ($61.88 / 2)(PVIFA 2.0655%,44) + $1,000(PVIF 2.0655%,44)
= [$30.94 x 28.7220] + [$1,000 x 0.4067] = $888.66 + $406.70 = $1,295.36
b). The bid-ask spread is 0.0559. We also know the bid price must be less than the asked price, so the bid price is:
Bid price = $1,295.36 - (0.0559/100)($1,000) = $1,294.80
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume...
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 2019 and the bond has a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 26 103.5527 103.5405 +.3080 6.099 5.474 May 31 104.5017 104.6474 +.4353 ?? 6.188 May 41 ?? ?? +.5470 4.131 a. In the above table, find the Treasury bond that matures in May 2041....
You find the following Treasury bond quotes. To calculate the number of years until matunity, assume that it is ourrently May 2016. The bonds have a par value of $1,000. Maturity MoYr May 23 May 28 May 38 Ask Yid 2.429 Rate Bid 103.5527 104.5017 Asked 103 6409 104.6474 Chg +3080 +4353 5470 5.474 6.188 4.131 In the above table, find the Treasury bond that matures in May 2023, What is the coupon rate for this bond? (Do not round...
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 23 Bid Asked 103.5384 103.5262 Ask Chg Yld +.3222 5879 ?? 104.4874 5.952 May 28 104.6331 +4221 ?? 3.911 6.133 May 38 ?? ?? +.5327 a. In the above table, find the Treasury bond that matures in May 2038. What is the asked price of...
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Maturity Mo/Yr Ask Yld Rate ?? Bid Chg +.3093 +4365 +.5483 Asked May 21 May 26 May 36 103.5540 104.5030 ?? 103.5418 6.119 104.6487 ?? 5.524 ?? 6.193 4.151 In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond...
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 Bid Asked Chg Ask Yld ?? May 28 103.5501 103.5379 +.3054 6.059 5.374 May 33 104.4991 104.6448 +.4329 ?? 6.178 May 43 ?? ?? +.5444 4.091 a. In...
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 24 May 29 May 39 Ask Yld 6.159 Bid Asked Chg 103.5566 103.5444 - 3119 104.5056 104.6513 +4389 5.624 6.203 ?? ?? +55094191 a. In the above table, find the Treasury bond that matures in May 2039. What is the asked price of this bond...
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 25 103.5501 103.5379 +.3054 6.059 5.374 May 30 104.4991 104.6448 +.4329 ?? 6.178 May 40 ?? ?? +.5444 4.091 In the above table, find the Treasury bond that matures in May 2040. What is the asked price of this bond...
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 22 103.4560 103.5288 +.3248 5.919 6.052 May 27 104.4900 104.6357 +.4245 ?? 6.143 May 37 ?? ?? +.5353 3.951 In the above table, find the Treasury bond that matures in May 2027. What is your yield to maturity if you...
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