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A6 Basic Bond Problem

A6 Basic Bond Problem - Coupon Bid Asked Chg Asked yield...

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A6 Bond Problem Assignment a) Define the three terms for expressing bond yield: current yield; coupon rate & yield to maturity b) Rank them from largest to smallest for the market rate greater than the coupon rate. Given the price determine the asked y-t-m for the following three types of Treasuries: [Data Date 9-9-2010] a. Coupon bond Maturity
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Unformatted text preview: Coupon Bid Asked Chg Asked yield 2040 Feb 15 4.625 113:28 113:29 -75 ___? ____ b. T-bill ydb = (F-P)/F *360/dtm; ytm = (F-P)/P*365/dtm Maturity Bid Asked Chg Asked yield 2011 Mar 03 0.180 0.175 +0.005 ____? ______ c. Zero Data on Treasury Strips Maturity Bid Asked Chg Asked yield 2040 Feb 15 30.957 3 30.967 unch. ____? _____...
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