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 ?? Maturity Month/Year May 31 Bid 103.4729 Asked 103.5457 Change Ask Yield +.3132 6.179

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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
??
5.674
6.208
Maturity
Month/Year
May 31
May 34
May 40
Yield to maturity
Bid
Asked
103.4729
103.5457
104.5069 104.6526
??
??
In the above table, find the Treasury bond that matures in May 2034. 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
+.3132 6.179
+.4401
??
+.5522
4.211
%
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 ?? 5.674 6.208 Maturity Month/Year May 31 May 34 May 40 Yield to maturity Bid Asked 103.4729 103.5457 104.5069 104.6526 ?? ?? In the above table, find the Treasury bond that matures in May 2034. 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 +.3132 6.179 +.4401 ?? +.5522 4.211 %
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