Problem 6-28 Bond Yields [LO 2] 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 17 5.624 6.203 Maturity Month/Year May 30 May 33 May 39 Asked 183.5444 Yield to maturity Bid 103.4716 184.5056 104.6513 77 77 Change Ask Yield +.3119 6.159 +4389 77 +5509 4.191 In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
Problem 6-28 Bond Yields [LO 2] 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 17 5.624 6.203 Maturity Month/Year May 30 May 33 May 39 Asked 183.5444 Yield to maturity Bid 103.4716 184.5056 104.6513 77 77 Change Ask Yield +.3119 6.159 +4389 77 +5509 4.191 In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 19PROB
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![Problem 6-28 Bond Yields [LO 2]
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
??
5.624
6.283
Maturity
Month/Year
May 30
May 33
May 39
Bid Asked.
Change Ask Yield
103.4716 103.5444 +.3119 6.159
104.5056 104.6513
27
77
77
4.191
+4389
+5509
In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Yield to maturity
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fa477e3-691c-46e0-90c3-3d7d13a96736%2Fc807c4b9-9a6f-464b-80dc-23c8953ad049%2Fv411uss_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 6-28 Bond Yields [LO 2]
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
??
5.624
6.283
Maturity
Month/Year
May 30
May 33
May 39
Bid Asked.
Change Ask Yield
103.4716 103.5444 +.3119 6.159
104.5056 104.6513
27
77
77
4.191
+4389
+5509
In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Yield to maturity
%
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