Question: LO2 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

LO2 27. Finding the Maturity You've just found a 10 percent

LO2 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. Page 202 Rate Maturity Mo/Yr May 25 May 27 May 36 Ask Bid Asked Chg ya 103.5362 103.8235 +.3204 2.18 ?? 5.850 103.1840 103.3215 +4513 22 6.125 12 ?? +6821 3.87 LO2 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. Page 202 Rate Maturity Mo/Yr May 25 May 27 May 36 Ask Bid Asked Chg ya 103.5362 103.8235 +.3204 2.18 ?? 5.850 103.1840 103.3215 +4513 22 6.125 12 ?? +6821 3.87

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