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To calculate the number of years until maturity, assume that it is currently May 2010. Rate Maturity Bid Asked Chg Ask Mo/Yr Yld ____ 16-May

To calculate the number of years until maturity, assume that it is currently May 2010. Rate Maturity Bid Asked Chg Ask Mo/Yr Yld ____ 16-May 106:14:00 106:18:00 2 4.98 6.5 24-May 108:13:00 108:15:00 4 ___ 5.38 May-34 ________ ________ 3 6.5 Requirement 1: In the above table, find the Treasury bond that matures in May 2034. What is the asked price of this bond in dollars? Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places. Asked Price $_____ Requirement 2: If the bid-ask spread for this bond is two ticks, what is the bid price in dollars? Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places. Bid price $______

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