1. At 04/1954: ___2.29_____ 

2. At 09/1976: ___7.59_____ 

3. At 09/1981: ___15.32_____ 

4. For the 

Latest Month: ____2.89 as of 7/2018____

B. Assume that a $1000 U.S. Treasury bond was purchased at par on each of first three

dates above. Also assume that for each of the three bonds the reported nominal rate

that you found above was the coupon rate at issuance.

Assuming semi-annual coupon payments, calculate the value of each bond after 5

years based on the then 5-year nominal rates on U.S. Treasuries available at

http://www.federalreserve.gov/releases/h15/data.htm

to determine the gain or loss on each of the three bonds after 5 years?

 1. At 04/1959: ________ 

 2. At 09/1981: ________

 3. At 09/1986: ________ 

 Which bond would you have preferred to purchase? 

 04/1954? ________

 09/1976? ________ 

 09/1981? ________ 

Why?