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ASKED YLD TO MATURITY MATURITY COUPON BID ASKED CHG 2015 Feb 15 2017 May 15 2020 Feb 15 2025 Feb 15 2030 May 15 2036

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ASKED YLD TO MATURITY MATURITY COUPON BID ASKED CHG 2015 Feb 15 2017 May 15 2020 Feb 15 2025 Feb 15 2030 May 15 2036 Feb 15 2044 Aug 15 4.000 4.500 3.625 7.625 6.250 4.500 3.125 101.6250 109.3516 108.8906 146.1719 141.3125 121.3359 95.9297 101.6328 109.3750 108.9375 146.2500 141.3906 121.4141 95.9922 -0.0078 0.0234 0.0938 0.2031 0.2734 0.2578 0.1875 0.046 0.927 1.880 2.541 2.934 3.121 3.338 The above table is an excerpt from a listing of Treasury issues. The highlighted bond matures in May 2017 Answer the following for the highlighted bond: (1) What would be the price in USD that an investor would sell to the dealer? (ii) What would be the price in USD that the dealer would sell to an investor? (111) What would be the coupon rate and the semiannual coupon payments by the bond? (iv)If the bond was a 10-year bond, when was the bond issued? (v) What would be the yield to maturity (YTM) based on the asked price? ASKED YLD TO MATURITY MATURITY COUPON BID ASKED CHG 2015 Feb 15 2017 May 15 2020 Feb 15 2025 Feb 15 2030 May 15 2036 Feb 15 2044 Aug 15 4.000 4.500 3.625 7.625 6.250 4.500 3.125 101.6250 109.3516 108.8906 146.1719 141.3125 121.3359 95.9297 101.6328 109.3750 108.9375 146.2500 141.3906 121.4141 95.9922 -0.0078 0.0234 0.0938 0.2031 0.2734 0.2578 0.1875 0.046 0.927 1.880 2.541 2.934 3.121 3.338 The above table is an excerpt from a listing of Treasury issues. The highlighted bond matures in May 2017 Answer the following for the highlighted bond: (1) What would be the price in USD that an investor would sell to the dealer? (ii) What would be the price in USD that the dealer would sell to an investor? (111) What would be the coupon rate and the semiannual coupon payments by the bond? (iv)If the bond was a 10-year bond, when was the bond issued? (v) What would be the yield to maturity (YTM) based on the asked price

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