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To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a $1,000 par value
To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a $1,000 par value and pay semiannual coupons. Maturity Rate Month/Year Bid ?? 3.850 4.125 May 29 102.725 May 32 103.168 Asked 102.915 103.823 Change +.3204 Ask Yield 2.18 May 38 ?? ?? +.4513 +.6821 ?? 3.87 a. In the above table, find the Treasury bond that matures in May 2038. What is the asked price of this bond in dollars? Note: 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 .0628, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Asked price b. Bid price
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