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How much would you have to pay to purchase one of these bonds? Refer to Figure 2.3 and look at the Treasury bond maturing in
How much would you have to pay to purchase one of these bonds?
Refer to Figure 2.3 and look at the Treasury bond maturing in February 2043. a. How much would you have to pay to purchase one of these bonds? (Round your answer to 2 decimal places.) Purchase price $ 1,003.20 b. What is its coupon rate? (Round your answer to 3 decimal places.) Coupon rate % c. What is the current yield (i.e., coupon income as a fraction of bond price) of the bond? (Round your answer to 2 decimal places.) Current yield % Bid Asked Change FIGURE 2.3 Listing of Treasury bond issues Source: Wall Street Journal Online, April 18, 2017 Maturity April 15, 2019 May 31, 2020 May 31, 2022 February 15, 2031 February 15, 2043 February 15, 2047 Coupon 0.875 1.500 1.875 5.375 3.125 3.000 99.3828 100.3047 100.6797 136.5313 105.4531 103.1797 99.3984 100.3203 100.6953 136.5938 105.4844 103.2109 0.0547 0.1719 0.3750 1.1797 1.5313 1.5313 Asked yield to maturity 1.182 1.394 1.732 2.275 2.824 2.840Step by Step Solution
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