Today is January 2, 2022, and investors expect the annual nominal risk-free interest rates in 2022 through 2024 to be: Year One-Year Rate (rRF) 2022 2.5 % 2023 2.3 2024 3.3 Assume the bonds have no risks. What is the yield to maturity for Treasury bonds that mature at the end of 2023 (a two-year bond)? Round your answer to one decimal place. % What is the yield to maturity for Treasury bonds that mature at the end of 2024 (a three-year bond)? Round your answer to one decimal place. %
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Today is January 2, 2022, and investors expect the annual nominal risk-free interest rates in 2022 through 2024 to be:
| Year | One-Year Rate (rRF) | |
| 2022 | 2.5 | % |
| 2023 | 2.3 | |
| 2024 | 3.3 |
Assume the bonds have no risks.
-
What is the yield to maturity for Treasury bonds that mature at the end of 2023 (a two-year bond)? Round your answer to one decimal place.
%
-
What is the yield to maturity for Treasury bonds that mature at the end of 2024 (a three-year bond)? Round your answer to one decimal place.
%
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- Suppose today is January 2, 2022, and investors expect the annual nominal risk-free interest rates in 2026 and 2027 to be: Year One-Year Rate (rRF) 2026 4.5 % 2027 1.9 Currently, a four-year Treasury bond that matures on December 31, 2025 has an interest rate equal to 2.0 percent. Assume the bonds have no risk. What is the yield on Treasury bonds that mature at the end of 2026 (a five-year bond)? Round your answer to one decimal place. % What is the yield on Treasury bonds that mature at the end of 2027 (a six-year bond)? Round your answer to one decimal place. %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 ?? 6.252 6.163 Maturity Month/Year May 36 May 41 May 51 a. Asked price b. Bid price Bid Asked 103.5462 103.5340 104.4952 104.6409 ?? ?? Change Ask Yield +.3015 5.999 +.4293 ?? +.5405 4.031 a. In the above table, find the Treasury bond that matures in May 2051. 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 .0654, 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.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 ?? 6.302 6.168 Maturity Month/Year May 29 May 32 May 38 Yield to maturity Asked Bid 103.4625 103.5353 104.4965 104.6422 ?? ?? In the above table, find the Treasury bond that matures in May 2032. 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. = Change Ask Yield +.3028 6.019 ?? +.4305 +.5418 4.051 %
- 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 32 May 35 May 41 Yield to maturity Asked Bid 103.4664 103.5392 104.5004 104.6461 +.4341 ?? ?? +.5457 Change Ask Yield. 6.079 +.3867 77 4.111 In the above table, find the Treasury bond that matures in May 2035. 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. %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 ?? 6.252 6.163 Maturity Month/Year May 36 May 41 May 51 Bid 103.5462 104.4952 ?? Asked 103.6340 104.6409 ?? Change Ask Yield +.3015 2.329 +.4293 +.5405 ?? 4.031 In the above table, find the Treasury bond that matures in May 2036. 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.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 ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid 103.4586 104.4926 ?? Yield to maturity Asked 103.5314 % 104.6383 ?? Change Ask Yield +.3274 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. 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. +.4269 +.5379
- 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 ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid Asked 103.5483 103.4755 104.5095 104.6552 ?? ?? Yield to maturity In the above table, find the Treasury bond that matures in May 2036. 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. Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 % KYou 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 ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid 103.4755 Asked 103.5483 104.5095 104.6552 ?? ?? In the above table, find the Treasury bond that matures in May 2036. 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 Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 Answer is complete but not entirely correct. 4.98%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 ?? 5.774 6.218 Maturity Month/Year May 34 May 37 May 43 Bid Asked 103.4755 103.5483 104.5095 104.6552 ?? ?? Yield to maturity In the above table, find the Treasury bond that matures in May 2037. 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. Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 %
- 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. Maturity Rate Month/Year Bid Asked Change Ask Yield IT4937 May 30 103.4638 103.5366 +.3041 May 33 104.4978 104.6435 +.4317 ?? ?? ?? 5.324 6.173 May 39 Yield to maturity +.5431 % 6.039 ?? 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. 4.071L 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 ?? 5.324 6.173 Maturity Month/Year May 30 May 33 May 39 Bid Asked 103.4638 103.5366 104.4978 104.6435 ?? ?? Change Ask Yield +.3041 +.4317 +.5431 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. X Answer is complete but not entirely correct. Yield to maturity 8.28 % 6.039 ?? 4.071You 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 ?? 5.324 6.173 Maturity Month/Year May 30 May 33 May 39 Bid Asked 103.4638 103.5366 104.4978 104.6435 ?? ?? Yield to maturity Change Ask Yield +.3041 +.4317 +.5431 In the above table, find the Treasury bond that matures in May 2033. What is your yield to maturity if you buy this bond? 6.039 ?? 4.071 Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. %