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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 | 2.7 | % |
2023 | 1.9 | |
2024 | 3.8 |
Assume the bonds have no risks.
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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.
__________ %
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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. %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 ?? 6.002 6.138 Maturity Month/Year Bid May 32 103.4547 May 35 May 41 104.4887 ?? Asked 103.5275 104.6344 ?? Change +.3235 +.4233 +.5340 Ask Yield 5.899 ?? 3.931 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. Yield to maturity %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 34 May 39 May 49 Bid 103.5314 104.4926 ?? Asked Change 103.5436 +.3274 104.6383 +.4269 ?? +.5379 Ask Yield 5.959 ?? 3.991 a. In the above table, find the Treasury bond that matures in May 2049. 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 0647, 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. a. Asked price b. Bid priceYou 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 ?? 5.374 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 %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. Asked Rate ??question mark 5.524 6.193 Maturity Month/Year May 34 May 37 May 43 Bid 103.4690 104.5030 ??question mark 103.5418 104.6487 ??question mark Change Ask Yield +.3093 6.119 +.4365 ?? +.5483 4.151 In the above table, find the Treasury bond that matures in May 2037. What is your yield to maturity if you buy this bond?
- 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 ?? 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. Rate ?? 6.052 6.143 Maturity Month/Year Bid Asked Change May 33 May 36 May 42 103.4560 103.5288 104.4900 104.6357 ?? ?? +.3248 Ask Yield 5.919 +.4245 +.5353 ?? 3.951 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 %