Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Locate the Treasury bond in Figure 8.4 maturing in November 2045. Assume a par value of $20,000. What is its coupon rate? (Enter your answer
Locate the Treasury bond in Figure 8.4 maturing in November 2045. Assume a par value of $20,000. What is its coupon rate? (Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) What is its bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What was the previous day's asked price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Coupon rate Bid price Previous day's asked price Figure 8.4 Sample Wall Street Journal U.S. Treasury Bond Prices Maturity 11/15/2018 3/31/2019 3/15/2020 10/31/2021 2/15/2023 5/15/2024 8/15/2027 11/15/2028 2/15/2029 2/15/2036 5/15/2037 5/15/2038 2/15/2039 11/15/2039 5/15/2040 8/15/2040 11/15/2041 5/15/2042 8/15/2042 11/15/2042 2/15/2043 Coupon 3.75 1.625 1.625 1.25 7.125 2.5 6.375 5.25 5.25 4.5 5 4.5 3.5 4.375 4.375 3.875 3.125 Bid 102.7266 100.3828 100.3516 98.0469 126.8516 102.7969 137.0625 129.1328 129.5469 129.7578 137.8594 130.2656 113.8672 128.4063 128.5781 119.9922 106.8203 104.4063 99.7188 99.6484 106.4844 101.7344 111.1953 103.9375 94.1172 103.8438 101.3438 103.8125 93.75 101.2188 103.8125 98.7422 Asked 102.7422 100.3984 100.3672 98.0625 126.8672 102.8125 137.0781 129. 1953 129.6094 129.8203 137.9219 130.3281 113.9297 128.4688 128.6406 120.0547 106.8516 104.4375 99.75 99.6797 106.5156 101.7656 111.2266 103.9688 94.1484 103.875 101.375 103.8438 93.7813 101.25 103.8438 98.7734 Chg -0.0313 -0.0078 -0.0078 -0.0313 -0.0625 -0.1094 -0.1016 -0.1484 -0.1719 -0.2344 -0.2031 -0.2 109 -0.1719 -0.1875 -0.2266 -0.1953 -0.1641 -0.1797 -0.1875 -0.125 -0.1172 -0.1328 -0.2266 -0.1875 -0.1719 -0.1875 -0.1719 -0.1797 -0.1797 -0.1719 -0.1719 -0.1484 Asked Yld 1.342 1.36 1.474 1.74 1.872 2.045 2.189 2.272 2.285 2.473 2.537 2.594 2.644 2.665 2.68 2.696 2.735 2.751 2.764 2.768 2.766 2.778 2.776 2.79 2.808 2.798 2.804 2.802 2.818 2.812 2.808 2.811 3 2.75 2.75 3.125 2.875 3.375 5/15/2043 3 2.5 2.875 5/15/2044 11/15/2044 2/15/2045 5/15/2045 8/15/2045 11/15/2045 5/15/2046 11/15/2046 5/15/2047 8/15/2047 2.5 2.875 2.75
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started