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To calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1,000 par value
To calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1,000 par value and pay semiannual coupons. Rate Maturity Mo/Yr Ask Bid 103.5362 Asked 103.8235 Chg Yld ?? +.3204 May 25 2.18 5.850 May 27 103.1840 103.3215 +.4513 ?? 6.125 May 36 ?? ?? +.6821 3.87 a. In the above table, find the Treasury bond that matures in May 2036. 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 .0628, what is the bid price in dollars? (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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