Locate the Treasury issue in Figure 7.4 maturing in February 2043. Assume a par value of $10,000. a. What is its coupon rate? (Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is its bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. 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 b. Previous day's price TITUTI Attn: Notes from Instructor In the hints, the bid and asked prices are quoted with colon :", not a dot".". That means, those prices are in 32nds (1/32). The chgs are also in 32nds. However, in this exercise question and in the textbook, the prices in Figure 7.4 are quoted with ., they are already in %. For example, if the bid price is quoted as 100.1484, it is 100.1484% of the par value, so dollar value is 100.1484% $10,000 = $10,014.84 if the par value is $10,000. And the coupon rates, chgs and asked yields all are given in % of the par value as well in the figure for this question. The 32nd way was more commonly used in the past. These are just different ways of quoting the bond prices. There are also other ways as well. So, for this exercise question, you can just do the calculation directly. You do not have to convert the prices and chgs from 32nds to %. See also Page 221 of the textbook (eBook). Thanks! Treasury Notes and Bonds Asked Yield Maturity Coupon Bid Asked Chg 1.250 100.1484 100.1641 0.0391 1.160 11/15/2018 4/15/2019 0.875 99.0859 0.0625 1.286 99.0703 98.5938 4/30/2020 1.125 98.6094 0.1016 1.558 127.4844 127.5000 0.2344 8.125 2.000 1.857 2.004 99.9609 99.9766 0.2266 1.500 96.5703 96.5859 0.2500 2.096 2.500 101.9531 2.210 8/15/2021 7/31/2022 2/28/2023 5/15/2024 8/15/2025 8/15/2026 8/15/2027 8/15/2028 101.9375 135.8438 92.4766 0.3125 0.3438 6.875 135.8594 2.262 1.500 92.4922 0.2969 2.380 6.375 136.8281 136.8438 0.4688 2.414 130.3516 0.4531 2.473 128.2188 0.4453 2.485 5.500 5.250 5.250 6.125 6.250 130.2891 128.1563 128.7578 139.1875 128.8203 0.4609 2.478 139.2500 0.5391 2.478 2.478 142.5781 134.3438 128.0781 0.5938 0.5625 5-375 2.470 142.6406 134.4063 128.1406 131.8516 136.0156 0.7031 2.618 131.7891 2.688 4.500 4.750 5.000 4.500 0.7500 0.7656 135.9531 11/15/2028 2/15/2029 8/15/2029 5/15/2030 2/15/2031 2/15/2036 2/15/2037 5/15/2037 5/15/2038 2/15/2039 8/15/2039 2/15/2040 11/15/2040 2/15/2041 2/15/2042 2/15/2043 5/15/2043 2.690 128.0625 128.1250 0.6875 2.749 3.500 110.9844 111.0469 0.6406 2.824 2.839 4-500 127.4922 127-5547 0.7344 129.7188 129.7813 0.6953 2.855 123-3438 123.4063 0.7422 2.885 132.4688 132.5000 0.7578 2.872 103.3516 103-3828 0.6484 4.625 4.250 4.750 3.125 3.125 2.875 3.625 2.500 2.875 0.6250 103.1406 98.3594 112.7266 103.1719 98.3906 2.934 2.950 2.963 0.5625 2/15/2044 112.7578 0.6484 2.939 2/15/2045 90.7578 90.7891 0.6016 2.987 11/15/2046 98.1172 98.1484 0.6719 2.969
