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 ?? 5.374 6.178 Maturity Month/Year Bid May 29 103.5501 May 34 May 44 104.4991 ?? Asked 103.6383 104.6448 ?? Change +.3054 +.4329 +.5444 Ask Yield 2.389 ?? 4.091 In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate 2.48 %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question
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
??
5.374
6.178
Maturity
Month/Year
Bid
May 29
103.5501
May 34
May 44
104.4991
??
Asked
103.6383
104.6448
??
Change
+.3054
+.4329
+.5444
Ask Yield
2.389
??
4.091
In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Coupon rate
2.48 %
Transcribed Image Text: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 ?? 5.374 6.178 Maturity Month/Year Bid May 29 103.5501 May 34 May 44 104.4991 ?? Asked 103.6383 104.6448 ?? Change +.3054 +.4329 +.5444 Ask Yield 2.389 ?? 4.091 In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate 2.48 %
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