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The table below exhibits the quote for a Treasury bond (Bond A) on March 16 th , 2018 on the Wall Street Journal. Treasury bonds

The table below exhibits the quote for a Treasury bond (Bond A) on March 16th, 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 16th, 2022, if the asked yield you calculated in part a) remain unchanged?
  3. When you browse through the Treasury bond quote section on March 16th, 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.

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