Problem 6-10 Inflation and Nominal Returns [LO 4]

Suppose the real rate is 3.65 percent and the inflation rate is 1.7 percent. What rate would you expect to see on a Treasury bill? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Problem 6-29 Bond Prices [LO 2]

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000.

Rate	Maturity Mo/Yr	Bid	Asked	Chg	Ask Yld
??	May 22	103.5371	103.5249	+.3209	5.859
5.901	May 27	104.4861	104.6318	+.4209	??
6.128	May 37	??	??	+.5314	3.891

a.	In the above table, find the Treasury bond that matures in May 2037. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	If the bid-ask spread for this bond is .0631, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)