Question 5 [10 points]

The table below exhibits the quote for a Treasury bond (Bond A) on March 16^th, 2018 on the Wall Street Journal. Treasury bonds pay coupons semi-annually. Assume the Treasury bonds face value to be $100 in this question.

Maturity	Coupon Rate	Bid	Asked	Asked yield
3/15/2025	2.000	99.9063	99.9219

1. Calculate asked yield, fill in the blank in the table, and show your calculation below.
2. What will be Bond As price on March 16^th, 2022, if the asked yield you calculated in part a) remain unchanged?
3. When you browse through the Treasury bond quote section on March 16^th, 2018, you also find the quote for another bond (Bond B). From the information given, calculate the asked price of the bond, again assuming the face value is $100 and coupons are paid semi-annually. Fill in the blank in the table and show process below.

Maturity	Coupon Rate	Bid	Asked	Asked yield
3/15/2025	1.000	92.83		1.936