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You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate 5.424 6.183 Maturity Month/Year May 30 May 35 May 45 a. Asked price b. Bid price Bid 103.5514 104.5004 104.6461 Asked 103.5392 ?? ?? Change +.3067 +.4341 +.5457 Ask Yield 6.079 ?? 4.111 a. In the above table, find the Treasury bond that matures in May 2045. 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 .0552, 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.
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