Question: all please LO 2 27. Finding the Maturity You've just found a 10 percent coupon bond on the market that sells for par value. What

all please all please LO 2 27. Finding the Maturity You've just found a

LO 2 27. Finding the Maturity You've just found a 10 percent coupon bond on the market that sells for par value. What is the maturity on this bond? (Warning: possible trick question.) Use the following Treasury bond quotes to answer Questions 28-30: To calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1.000 par value and pay semiannual coupons. 2 PART 4 Valuing Stocks and Bonds Ask Yld Rate Bid Chg ?? 5.850 6.125 Maturity Mo/Y! May 25 May 27 May 36 103.5362 103.1840 ?? Asked 103.8235 103.3215 ?? +.3204 +.4513 +6821 2.18 ?? 3.87 LO 2 28. Bond Yields in the table, find the Treasury bond that matures in May 2027. What is your yield to maturity if you buy this bond? 29. Bond Prices in the table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? If the bid-ask spread for this bond is .0628, what is the bid price in dollars? LO 2 LO 2 27. Finding the Maturity You've just found a 10 percent coupon bond on the market that sells for par value. What is the maturity on this bond? (Warning: possible trick question.) Use the following Treasury bond quotes to answer Questions 28-30: To calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1.000 par value and pay semiannual coupons. 2 PART 4 Valuing Stocks and Bonds Ask Yld Rate Bid Chg ?? 5.850 6.125 Maturity Mo/Y! May 25 May 27 May 36 103.5362 103.1840 ?? Asked 103.8235 103.3215 ?? +.3204 +.4513 +6821 2.18 ?? 3.87 LO 2 28. Bond Yields in the table, find the Treasury bond that matures in May 2027. What is your yield to maturity if you buy this bond? 29. Bond Prices in the table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? If the bid-ask spread for this bond is .0628, what is the bid price in dollars? LO 2

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