Problem 6-29 Bond Prices [LO 2] You find the following Treasury bond quotes. To calculate the...
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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 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.574 6.198 Maturity Month/Year May 33 May 30 May 40 Bid 103.5431 104.5043 ?? Asked 103.5553 104.6500 ?? +.3106 +.4377 +.5496 Change Ask Yield 6.139 ?? 4.171 a. In the above table, find the Treasury bond that matures in May 2040. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the bid-ask spread for this bond is .0573, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Asked price $ 1,365.68 x b. Bid price $ 1,365.03 X 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 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.574 6.198 Maturity Month/Year May 33 May 30 May 40 Bid 103.5431 104.5043 ?? Asked 103.5553 104.6500 ?? +.3106 +.4377 +.5496 Change Ask Yield 6.139 ?? 4.171 a. In the above table, find the Treasury bond that matures in May 2040. What is the asked price of this bond in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the bid-ask spread for this bond is .0573, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Asked price $ 1,365.68 x b. Bid price $ 1,365.03 X
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