Refer to the Treasury-note and Treasury-bond quotes in Table 6-1. a. What is the asking price...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Refer to the Treasury-note and Treasury-bond quotes in Table 6-1. a. What is the asking price on the 1.375 percent May 2020 Treasury-bond if the face value of the bond is $10,000? b. What is the bid price on the 0.875 percent June 2017 Treasury-note if the face value of the bond is $10,000? (For all requirements, round your answers to 2 decimal places. (e.g., 32.16)) a. The Ask price b. The Bid price Amount TABLE 6-1 Treasury Note and Bond Quote Treasury Notes & Bonds Monday, May 23, 2016 Treasury note and bond data are representative over-the-counter quotations as of 3pm Eastern time. For notes and bonds callable prior to maturity, yields are computed to the earliest call date for Issues quoted above par and to the maturity date for Issues below par. U.S. Treasury Strips Monday, May 23, 2016 U.S. zero-coupon STRIPS allow Investors to hold the Interest and principal components of eligible Treasury notes and bonds as separate securities. STRIPS offer no interest payment; Investors receive payment only at maturity. Quotes are as of 3 p.m. Eastern time based on transactions of $1 million or more. Yields calculated on the ask quote. Maturity Asked yield Chg Maturity 5/31/2016 Coupon 6/15/2016 0.500 100.0078 6/30/2016 0.500 100.0078 7/15/2016 0.625 100.0391 7/31/2016 8/15/2016 8/31/2016 9/15/2016 Asked 0.375 100.0000 100.0156 100.0234 100.0234 100.0547 0.500 100.0234 100.0391 0.625 100.0547 100.0703 0.500 100.0391 0.875 100.1250 Bid Asked Chg yield 0.0078 -0.441 0.0078 0.110 unch. 0.269 0.0156 0.242 unch. Bid Asked Treasury Bond, Stripped Principal 2016 Aug 15 99.896 99.899 -0.002 0.44 2016 Nov 15 99.748 99.752 -0.004 0.52 0.291 2017 May 15 99.234 99.244 -0.010 0.78 0.0078 0.316 2018 Nov 15 97.764 97.788 -0.018 0.90 100.0547 0.0234 0.296 2019 Feb 15 97.420 97.447 -0.019 0.95 100.1406 -0.0156 0.420 2019 Aug 15 96.522 96.553 -0.023 1.09 9/30/2016 0.500 100.0469 100.0625 0.0234 0.322 2022 Nov 15 90.261 90.319 0.021 1.58 10/15/2016 11/15/2016 2/15/2017 1.000 100.0547 0.625 100.0547 100.0703 0.625 100.0156 100.0313 100.0703 -0.0234 0.446 2023 Feb 15 89.752 89.812 0.052 1.60 0.0078 0.477 2023 Aug 15 88.683 88.746 0.039 1.66 unch. 0.582 2024 Nov 15 86.080 86.153 0.066 1.77 2/28/2017 3/15/2017 3/31/2017 4/30/2017 4/30/2017 5/15/2017 0.875 100.1641 100.1797 0.750 100.0859 100.1016 1.000 100.2813 0.500 99.8203 -0.0313 0.640 2029 Aug 15 75.932 76.031 0.125 2.08 -0.0078 0.624 2030 May 15 74.786 74.889 0.130 2.08 100.2969 -0.0078 0.650 2031 Feb 15 73.491 73.598 0.134 2.09 99.8359 0.0156 0.676 2044 Feb 15 47.378 47.508 0.063 2.70 0.875 100.1641 100.1797 -0.0078 0.682 2044 May 15 46.675 46.804 0.063 2.73 5/31/2017 6/15/2017 6/30/2017 7/31/2017 9/30/2017 10/15/2017 10/31/2017 0.875 100.1563 100.1719 0.625 99.8828 99.8984 0.0078 0.725 0.875 100.1250 100.1406 -0.0234 0.750 99.9844 100.0000 -0.0078 0.750 0.625 99.7891 99.8047 -0.0391 0.790 1.875 101.3906 101.4063 -0.0156 0.827 0.875 100.0469 100.0625 -0.0156 1.875 101.4609 101.4766 2044 Nov 15 45.689 -0.0078 0.698 45.818 0.030 2.76 2045 Feb 15 45.309 45.437 0.063 2.77 0.742 2045 May 15 44.969 45.097 0.063 2.77 2045 Nov 15 44.256 44.385 0.063 2.78 2046 Feb 15 44.077 44.207 0.063 2.77 2046 May 15 43.907 44.037 0.063 2.76 0.830 Treasury Note, Stripped Principal unch. 0.837 2016 Aug 31 99.874 99.876 -0.002 0.46 11/15/2017 0.875 100.0234 100.0391 -0.0078 0.848 2016 Nov 30 99.704 99.708 -0.005 0.56 11/15/2017 11/30/2017 4.250 104.9766 104.9922 0.625 99.6406 99.6828 -0.0234 0.839 2017 Aug 15 98.980 98.992 -0.012 0.83 -0.0156 0.853 2017 Nov 30 98.779 98.794 -0.017 0.80 11/30/2017 12/31/2017 2/15/2019 2/28/2019 2/28/2019 3/15/2019 3/31/2019 3/31/2019 5/15/2020 5/31/2020 5/31/2020 6/30/2020 6/30/2020 7/31/2020 8/15/2020 5/15/2023 8/15/2023 0.875 100.0234 100.0318 -0.0156 0.849 1.000 100.2109 100.2266 -0.0078 0.857 2.750 104.7109 104.7266 -0.0234 1.375 100.9297 100.9453 -0.0156 1.500 101.2813 101.2969 -0.0313 1.024 1.000 99.8984 99.9141 -0.0078 1.031 1.500 101.3281 101.3438 -0.0156 1.021 1.625 101.6250 101.6406 -0.0234 1.040 -0.0234 3.500 108.6953 108.7109 1.247 1.375 100.4766 100.4922 -0.0234 1.249 1.500 100.9141 100.9297 -0.0313 1.262 1.625 101.3594 101.3750 -0.0078 1.875 102.4141 102.4297 -0.0078 1.265 2.000 102.8750 102.8906 -0.0234 1.288 2.625 105.4375 105.4531 -0.0156 1.295 1.750 100.6875 100.7031 0.0703 2.500 105.7500 105.7656 0.0547 2018 Aug 31 97.918 97.940 -0.019 0.92 2018 Nov 30 97.769 97.794 -0.025 0.89 0.989 2022 May 15 91.080 91.134 0.020 1.56 1.028 2025 Nov 15 83.742 83.820 0.072 1.87 2026 May 15 82.949 83.289 0.069 1.84 Stripped Coupon Interest 2016 Jun 15 99.980 99.981 unch. 0.32 2016 Nov 15 99.730 99.735 -0.004 0.56 2019 May 31 96.611 96.640 -0.020 1.13 2019 Nov 30 95.893 95.927 -0.005 1.18 2024 May 15 86.487 86.556 0.042 1.82 1.280 2024 Nov 15 85.307 85.378 0.067 1.87 2025 Feb 15 84.721 84.794 0.087 1.90 2025 May 15 84.080 84.155 0.088 1.93 1.643 2025 Aug 15 83.575 83.651 0.089 1.94 2035 May 15 62.664 62.782 0.146 2.47 1.650 2035 Nov 15 61.612 61.731 11/15/2023 0.118 2.49 2.750 107.5234 107.5391 0.0703 1.673 2036 Feb 15 61.316 61.435 0.119 2.48 2/15/2024 5/15/2024 2.750 107.5781 107.5938 0.0703 1.697 2.500 105.7656 105.7813 2036 May 15 60.737 60.857 0.120 2.50 0.1094 1.721 2036 Aug 15 60.181 60.301 0.120 2.52 8/15/2024 11/15/2024 5/15/2045 11/15/2045 2.375 104.7656 104.7813 2.250 103.7422 103.7578 3.000 107.6875 107.7188 3.000 107.6563 107.6875 0.1016 1.748 2036 Nov 15 59.633 59.753 0.120 2.53 0.1172 1.771 2044 Nov 15 45.338 45.465 0.031 2.79 0.1094 2.618 2045 May 15 44.808 44.937 0.062 2.78 0.0938 2.624 2045 Aug 15 44.528 44.657 0.063 2.78 2/15/2046 5/15/2046 2.500 97.2109 97.2422 0.0938 2.634 2.500 97.2656 97.2969 0.1250 2.631 2045 Nov 15 44.128 44.256 0.063 2.79 2046 May 15 43.907 44.037 0.063 2.76 Source: The Wall Street Journal Online, May 24, 2016. www.wsj.com Refer to the Treasury-note and Treasury-bond quotes in Table 6-1. a. What is the asking price on the 1.375 percent May 2020 Treasury-bond if the face value of the bond is $10,000? b. What is the bid price on the 0.875 percent June 2017 Treasury-note if the face value of the bond is $10,000? (For all requirements, round your answers to 2 decimal places. (e.g., 32.16)) a. The Ask price b. The Bid price Amount TABLE 6-1 Treasury Note and Bond Quote Treasury Notes & Bonds Monday, May 23, 2016 Treasury note and bond data are representative over-the-counter quotations as of 3pm Eastern time. For notes and bonds callable prior to maturity, yields are computed to the earliest call date for Issues quoted above par and to the maturity date for Issues below par. U.S. Treasury Strips Monday, May 23, 2016 U.S. zero-coupon STRIPS allow Investors to hold the Interest and principal components of eligible Treasury notes and bonds as separate securities. STRIPS offer no interest payment; Investors receive payment only at maturity. Quotes are as of 3 p.m. Eastern time based on transactions of $1 million or more. Yields calculated on the ask quote. Maturity Asked yield Chg Maturity 5/31/2016 Coupon 6/15/2016 0.500 100.0078 6/30/2016 0.500 100.0078 7/15/2016 0.625 100.0391 7/31/2016 8/15/2016 8/31/2016 9/15/2016 Asked 0.375 100.0000 100.0156 100.0234 100.0234 100.0547 0.500 100.0234 100.0391 0.625 100.0547 100.0703 0.500 100.0391 0.875 100.1250 Bid Asked Chg yield 0.0078 -0.441 0.0078 0.110 unch. 0.269 0.0156 0.242 unch. Bid Asked Treasury Bond, Stripped Principal 2016 Aug 15 99.896 99.899 -0.002 0.44 2016 Nov 15 99.748 99.752 -0.004 0.52 0.291 2017 May 15 99.234 99.244 -0.010 0.78 0.0078 0.316 2018 Nov 15 97.764 97.788 -0.018 0.90 100.0547 0.0234 0.296 2019 Feb 15 97.420 97.447 -0.019 0.95 100.1406 -0.0156 0.420 2019 Aug 15 96.522 96.553 -0.023 1.09 9/30/2016 0.500 100.0469 100.0625 0.0234 0.322 2022 Nov 15 90.261 90.319 0.021 1.58 10/15/2016 11/15/2016 2/15/2017 1.000 100.0547 0.625 100.0547 100.0703 0.625 100.0156 100.0313 100.0703 -0.0234 0.446 2023 Feb 15 89.752 89.812 0.052 1.60 0.0078 0.477 2023 Aug 15 88.683 88.746 0.039 1.66 unch. 0.582 2024 Nov 15 86.080 86.153 0.066 1.77 2/28/2017 3/15/2017 3/31/2017 4/30/2017 4/30/2017 5/15/2017 0.875 100.1641 100.1797 0.750 100.0859 100.1016 1.000 100.2813 0.500 99.8203 -0.0313 0.640 2029 Aug 15 75.932 76.031 0.125 2.08 -0.0078 0.624 2030 May 15 74.786 74.889 0.130 2.08 100.2969 -0.0078 0.650 2031 Feb 15 73.491 73.598 0.134 2.09 99.8359 0.0156 0.676 2044 Feb 15 47.378 47.508 0.063 2.70 0.875 100.1641 100.1797 -0.0078 0.682 2044 May 15 46.675 46.804 0.063 2.73 5/31/2017 6/15/2017 6/30/2017 7/31/2017 9/30/2017 10/15/2017 10/31/2017 0.875 100.1563 100.1719 0.625 99.8828 99.8984 0.0078 0.725 0.875 100.1250 100.1406 -0.0234 0.750 99.9844 100.0000 -0.0078 0.750 0.625 99.7891 99.8047 -0.0391 0.790 1.875 101.3906 101.4063 -0.0156 0.827 0.875 100.0469 100.0625 -0.0156 1.875 101.4609 101.4766 2044 Nov 15 45.689 -0.0078 0.698 45.818 0.030 2.76 2045 Feb 15 45.309 45.437 0.063 2.77 0.742 2045 May 15 44.969 45.097 0.063 2.77 2045 Nov 15 44.256 44.385 0.063 2.78 2046 Feb 15 44.077 44.207 0.063 2.77 2046 May 15 43.907 44.037 0.063 2.76 0.830 Treasury Note, Stripped Principal unch. 0.837 2016 Aug 31 99.874 99.876 -0.002 0.46 11/15/2017 0.875 100.0234 100.0391 -0.0078 0.848 2016 Nov 30 99.704 99.708 -0.005 0.56 11/15/2017 11/30/2017 4.250 104.9766 104.9922 0.625 99.6406 99.6828 -0.0234 0.839 2017 Aug 15 98.980 98.992 -0.012 0.83 -0.0156 0.853 2017 Nov 30 98.779 98.794 -0.017 0.80 11/30/2017 12/31/2017 2/15/2019 2/28/2019 2/28/2019 3/15/2019 3/31/2019 3/31/2019 5/15/2020 5/31/2020 5/31/2020 6/30/2020 6/30/2020 7/31/2020 8/15/2020 5/15/2023 8/15/2023 0.875 100.0234 100.0318 -0.0156 0.849 1.000 100.2109 100.2266 -0.0078 0.857 2.750 104.7109 104.7266 -0.0234 1.375 100.9297 100.9453 -0.0156 1.500 101.2813 101.2969 -0.0313 1.024 1.000 99.8984 99.9141 -0.0078 1.031 1.500 101.3281 101.3438 -0.0156 1.021 1.625 101.6250 101.6406 -0.0234 1.040 -0.0234 3.500 108.6953 108.7109 1.247 1.375 100.4766 100.4922 -0.0234 1.249 1.500 100.9141 100.9297 -0.0313 1.262 1.625 101.3594 101.3750 -0.0078 1.875 102.4141 102.4297 -0.0078 1.265 2.000 102.8750 102.8906 -0.0234 1.288 2.625 105.4375 105.4531 -0.0156 1.295 1.750 100.6875 100.7031 0.0703 2.500 105.7500 105.7656 0.0547 2018 Aug 31 97.918 97.940 -0.019 0.92 2018 Nov 30 97.769 97.794 -0.025 0.89 0.989 2022 May 15 91.080 91.134 0.020 1.56 1.028 2025 Nov 15 83.742 83.820 0.072 1.87 2026 May 15 82.949 83.289 0.069 1.84 Stripped Coupon Interest 2016 Jun 15 99.980 99.981 unch. 0.32 2016 Nov 15 99.730 99.735 -0.004 0.56 2019 May 31 96.611 96.640 -0.020 1.13 2019 Nov 30 95.893 95.927 -0.005 1.18 2024 May 15 86.487 86.556 0.042 1.82 1.280 2024 Nov 15 85.307 85.378 0.067 1.87 2025 Feb 15 84.721 84.794 0.087 1.90 2025 May 15 84.080 84.155 0.088 1.93 1.643 2025 Aug 15 83.575 83.651 0.089 1.94 2035 May 15 62.664 62.782 0.146 2.47 1.650 2035 Nov 15 61.612 61.731 11/15/2023 0.118 2.49 2.750 107.5234 107.5391 0.0703 1.673 2036 Feb 15 61.316 61.435 0.119 2.48 2/15/2024 5/15/2024 2.750 107.5781 107.5938 0.0703 1.697 2.500 105.7656 105.7813 2036 May 15 60.737 60.857 0.120 2.50 0.1094 1.721 2036 Aug 15 60.181 60.301 0.120 2.52 8/15/2024 11/15/2024 5/15/2045 11/15/2045 2.375 104.7656 104.7813 2.250 103.7422 103.7578 3.000 107.6875 107.7188 3.000 107.6563 107.6875 0.1016 1.748 2036 Nov 15 59.633 59.753 0.120 2.53 0.1172 1.771 2044 Nov 15 45.338 45.465 0.031 2.79 0.1094 2.618 2045 May 15 44.808 44.937 0.062 2.78 0.0938 2.624 2045 Aug 15 44.528 44.657 0.063 2.78 2/15/2046 5/15/2046 2.500 97.2109 97.2422 0.0938 2.634 2.500 97.2656 97.2969 0.1250 2.631 2045 Nov 15 44.128 44.256 0.063 2.79 2046 May 15 43.907 44.037 0.063 2.76 Source: The Wall Street Journal Online, May 24, 2016. www.wsj.com
Expert Answer:
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date:
Students also viewed these finance questions
-
A prospective tenant has presented a lease proposal to the owner of an office building. The lease has a five-year term and a contract rental rate of $16.00 per square foot in the first year of the...
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Consumers commonly focus on the price when buying auto insurance. They feel less pain from buying auto insurance when they pay as little as possible However, this strategy can backfire because the...
-
A pressure cooker has the lid screwed on tight. A small opening with A = 5 mm2 is covered with a petcock that can be lifted to let steam escape. How much mass should the petcock have to allow boiling...
-
Let f (x) = (x 1)10, p = 1, and pn = 1 + 1/n. Show that |f (pn)| < 103 whenever n > 1 but that |p pn| < 103 requires that n > 1000.
-
Compare the capital costs and the levelized costs of operation for a \(1000 \mathrm{MW}\) nuclear power plant and a 1000 MW PV system constructed in the Mojave desert in California. The PV system is...
-
Watt Company produces two products. Budgeted annual income statements for the two products are provided here: Required a. Based on budgeted sales, determine the relative sales mix between the two...
-
Take your class and its multiple subclasses. Read in a set of s. This set should contain some (but not all) duplicate elements. Store the s in sorted order in a doubly-linked list of s based on the...
-
When can outsourcing technology functionality to an outside vendor create a condition that causes loss of competitive advantage for an organization: a) The function is enhanced by the third-party...
-
What are the advantages of a planer ?
-
What is the use of chip breakers ?
-
What feature of manufacturing planning and control systems operates under the premise that the planned work input to a work center should never exceed the planned work output?
-
What shop-floor control document tells the supervisor which jobs are to be run, in what order, and how long each will take?
-
Explain how the center-of-gravity method works.
-
The audit senior has asked you to perform analytical procedures to obtain substantive evidence on the reasonableness of recorded depreciation expense of the delivery equipment of a client. Changes in...
-
(a) With not more than 300 words, examine why Malaysia missed its 2020 targets to divert 40% of waste from landfills and increase recycling rates to 22%. (10 marks) b) Why arent Malaysian recycling?...
-
A tapered circular bar is rigidly fixed at both the ends as shown in Fig. 13.45. If the temperature is raised by \(50^{\circ} \mathrm{C}\), calculate the stress in the bar. Take \(E=202...
-
A trapezoidal flat steel plate of thickness \(10 \mathrm{~mm}\) tapers uniformly from a width \(150 \mathrm{~mm}\) to \(100 \mathrm{~mm}\) in a length of \(500 \mathrm{~mm}\). Calculate the extension...
-
On the principal planes, the maximum stress is the (a) normal stress (b) shear stress (c) both normal and shear stress (d) either normal or shear stress
Study smarter with the SolutionInn App