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BUSI 420 Homework 5 Interest Rates & Bonds Assignment solutions complete answers
BUSI 420 Homework 5 Interest Rates & Bonds Assignment solutions complete answers
LKD Co. has 14 percent coupon bonds with a YTM of 9.8 percent. The current yield on these bonds is 10.3 percent. How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Both Bond A and Bond B have 7.6 percent coupons and are priced at par value. Bond A has 8 years to maturity, while Bond B has 16 years to maturity.
a. If interest rates suddenly rise by 2 percent, what is the percentage change in price of Bond A and Bond B? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. If interest rates suddenly fall by 2 percent instead, what would be the percentage change in price of Bond A and Bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Great Wall Pizzeria issued 12-year bonds one year ago at a coupon rate of 5.2 percent. If the YTM on these bonds is 8.3 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Ghost Rider Corporation has bonds on the market with 14 years to maturity, a YTM of 6.2 percent, and a current price of $923. What must the coupon rate be on the company’s bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $435 per bond. If these bonds are callable in 7 years at a call price of $523, what is their yield to call? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $528 per bond. These are callable in 6 years at a call price of $580. Using semiannual compounding, what is the yield to call for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $462 per bond. Each bond has a face value of $1,000 payable at maturity in 12 years. What is the yield to maturity for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
May Industries has a bond outstanding that sells for $830. The bond has a coupon rate of 7 percent and 10 years until maturity. What is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A bond sells for $925.36 and has a coupon rate of 7.60 percent. If the bond has 20 years until maturity, what is the yield to maturity of the bond? Assume semiannual compounding. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A bond with 17 years until maturity has a coupon rate of 7.2 percent and a yield to maturity of 6.9 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A bond has a coupon rate of 8.7 percent and 6 years until maturity. If the yield to maturity is 7.6 percent, what is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Rolling Company bonds have a coupon rate of 5.40 percent, 21 years to maturity, and a current price of $1,156. What is the YTM? The current yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Aloha, Inc., has 4.5 percent coupon bonds on the market that have 16 years left to maturity. If the YTM on these bonds is 5.5 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You have a car loan with a nominal rate of 8.35 percent. With interest charged monthly, what is the effective annual rate (EAR) on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A Treasury bill that settles on May 18, 2019, pays $100,000 on August 21, 2019. Assuming a discount rate of 3.87 percent, what are the price and bond equivalent yield? Use Excel to answer this question. (Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places.)
You observe that the current interest rate on short-term U.S. Treasury bills is 4.72 percent. You also read in the newspaper that the GDP deflator, which is a common macroeconomic indicator used by market analysts to gauge the inflation rate, currently implies that inflation is 1.55 percent. What is the approximate real rate of interest on short-term Treasury bills? (Enter your answer as a percent rounded to 2 decimal places.)
The treasurer of a large corporation wants to invest $44 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 3.56 percent; that is, the EAR for this investment is 3.56 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 121 days, what are the bond equivalent and discount yields on this investment? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)
A Treasury bill purchased in December 2020 has 124 days until maturity and a bank discount yield of 1.64 percent. Assume a $100 face value.
A Treasury bill with 118 days to maturity is quoted at 95.920. What are the bank discount yield, the bond equivalent yield, and the effective annual return? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)
How much would you pay for a U.S. Treasury bill with 114 days to maturity quoted at a discount yield of 2.37 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)
A U.S. Treasury bill with 89 days to maturity is quoted at a discount yield of 1.35 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)
What is the price of a U.S. Treasury bill with 64 days to maturity quoted at a discount yield of 1.75 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Your investments increased in value by 15.0 percent last year, but your purchasing power increased by only 10.7 percent. What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place.)
A stock had a return of 5.9 percent last year. If the inflation rate was 1.6 percent, what was the approximate real return? (Enter your answer as a percent rounded to 1 decimal place.)
A Treasury STRIPS is quoted at 67.181 and has 7 years until maturity. What is the yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A Treasury STRIPS matures in 11 years and has a yield to maturity of 10.4 percent. Assume the par value is $100,000.
What is the price of a Treasury STRIPS with a face value of $100 that matures in 20 years and has a yield to maturity of 7.5 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 1
What is the price of a Treasury STRIPS with a face value of $100 that matures in 11 years and has a yield to maturity of 6.0 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 2
A Treasury STRIPS matures in 12 years and has a yield to maturity of 10.9 percent. Assume the par value is $100,000.
a. What is the price of the STRIPS? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Question 3
A Treasury STRIPS is quoted at 61.159 and has 10 years until maturity. What is the yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 4
What is the yield to maturity on a Treasury STRIPS with 13 years to maturity and a quoted price of 57.001? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 5
A stock had a return of 9.1 percent last year. If the inflation rate was 1.5 percent, what was the approximate real return? Enter your answer as a percent rounded to 1 decimal place.)
Question 6
Your investments increased in value by 12.3 percent last year, but your purchasing power increased by only 8.3 percent. What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place.)
Question 7
What is the price of a U.S. Treasury bill with 100 days to maturity quoted at a discount yield of 1.40 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 8
A U.S. Treasury bill with 83 days to maturity is quoted at a discount yield of 1.85 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)
Question 9
How much would you pay for a U.S. Treasury bill with 104 days to maturity quoted at a discount yield of 2.26 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 10
A U.S. Treasury bill with 112 days to maturity is quoted at a discount yield of 4.50 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)
Question 11
A Treasury bill with 129 days to maturity is quoted at 94.920. What are the bank discount yield, the bond equivalent yield, and the effective annual return? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)
Question 12
A Treasury bill purchased in December 2016 has 67 days until maturity and a bank discount yield of 3.21 percent. Assume a $100 face value.
a. What is the price of the bill as a percentage of face value? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
b. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)
Question 13
The treasurer of a large corporation wants to invest $14 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 6.46 percent; that is, the EAR for this investment is 6.46 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 92 days, what are the bond equivalent and discount yields on this investment? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)
Question 14
You observe that the current interest rate on short-term U.S. Treasury bills is 2.13 percent. You also read in the newspaper that the GDP deflator, which is a common macroeconomic indicator used by market analysts to gauge the inflation rate, currently implies that inflation is 1.4 percent. What is the approximate real rate of interest on short-term Treasury bills? (Enter your answer as a percent rounded to 2 decimal places.)
Question 15
Consider the following spot interest rates for maturities of one, two, three, and four years.
What are the following forward rates, where f1, k refers to a forward rate for the period beginning in one year and extending for k years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Question 16
Consider the following spot interest rates for maturities of one, two, three, and four years.
Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Question 17
A Treasury bill that settles on May 18, 2016, pays $100,000 on August 21, 2016. Assuming a discount rate of 3.48 percent, what are the price and bond equivalent yield? Use Excel to answer this question. (Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places.)
Question 18
You have a car loan with a nominal rate of 7.30 percent. With interest charged monthly, what is the effective annual rate (EAR) on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 19
Aloha Inc. has 6 percent coupon bonds on the market that have 8 years left to maturity. If the YTM on these bonds is 7.5 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 20
Rolling Company bonds have a coupon rate of 4.20 percent, 15 years to maturity, and a current price of $1,096. What is the YTM? The current yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Question 21
A bond has a coupon rate of 11 percent and 5 years until maturity. If the yield to maturity is 10.1 percent, what is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 22
A bond with 19 years until maturity has a coupon rate of 7.2 percent and a yield to maturity of 7.1 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 23
A bond sells for $921.08 and has a coupon rate of 6.80 percent. If the bond has 16 years until maturity, what is the yield to maturity of the bond? Assume semiannual compounding. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 24
May Industries has a bond outstanding that sells for $907. The bond has a coupon rate of 4.7 percent and 27 years until maturity. What is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 25
Atlantis Fisheries issues zero coupon bonds on the market at a price of $477 per bond. Each bond has a face value of $1,000 payable at maturity in 13 years. What is the yield to maturity for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 26
Atlantis Fisheries issues zero coupon bonds on the market at a price of $447 per bond. These are callable in 10 years at a call price of $560. Using semiannual compounding, what is the yield to call for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 27
Atlantis Fisheries issues zero coupon bonds on the market at a price of $451 per bond. If these bonds are callable in 9 years at a call price of $499, what is their yield to call? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 28
Ghost Rider Corporation has bonds on the market with 9 years to maturity, a YTM of 8.6 percent, and a current price of $947. What must the coupon rate be on the company’s bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Question 29
Great Wall Pizzeria issued 8-year bonds one year ago at a coupon rate of 6.1 percent. If the YTM on these bonds is 7.5 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 30
Both Bond A and Bond B have 8 percent coupons and are priced at par value. Bond A has 5 years to maturity, while Bond B has 18 years to maturity.
a. If interest rates suddenly rise by 2.4 percent, what is the percentage change in price of Bond A and Bond B? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. If interest rates suddenly fall by 2.4 percent instead, what would be the percentage change in price of Bond A and Bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Question 31
LKD Co. has 12 percent coupon bonds with a YTM of 9.6 percent. The current yield on these bonds is 10.1 percent. How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Problem 10-19 Finding the Bond Maturity (LO1, CFA2)
LKD Company has 10 percent coupon bonds with a YTM of 8.1 percent. The current yield on these bonds is 9.5 percent. How many years do these bonds have left until they mature?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 10-17 Interest Rate Risk (LO3, CFA4)
Both Bond A and Bond B have 8.2 percent coupons and are priced at par value. Bond A has 6 years to maturity, while Bond B has 18 years to maturity.
a. If interest rates suddenly rise by 1 percent, what is the percentage change in price of Bond A and Bond B?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
b. If interest rates suddenly fall by 1 percent instead, what would be the percentage change in price of Bond A and Bond B?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Problem 10-12 Bond Prices (LO1, CFA5)
Great Wall Pizzeria issued 11-year bonds one year ago at a coupon rate of 6.8 percent. If the YTM on these bonds is 9 percent, what is the current bond price?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 10-11 Coupon Rates (LO1, CFA2)
Ghost Rider Corporation has bonds on the market with 10 years to maturity, a YTM of 5.1 percent, and a current price of $950. What must the coupon rate be on the company’s bonds?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 10-10 Yield to Call (LO1, CFA5)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $457 per bond. If these bonds are callable in 6 years at a call price of $514, what is their yield to call?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 10-9 Yield to Call (LO1, CFA5)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $421 per bond. These are callable in 7 years at a call price of $640. Using semiannual compounding, what is the yield to call for these bonds?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 10-8 Yield to Maturity (LO1, CFA5)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $582 per bond. Each bond has a face value of $1,000 payable at maturity in 20 years. What is the yield to maturity for these bonds?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 10-7 Yield to Maturity (LO1, CFA5)
May Industries has a bond outstanding that sells for $786. The bond has a coupon rate of 5.9 percent and 21 years until maturity. What is the yield to maturity of the bond?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 10-5 Yield to Maturity (LO1, CFA5)
A bond sells for $981.20 and has a coupon rate of 7.10 percent. If the bond has 28 years until maturity, what is the yield to maturity of the bond? Assume semiannual compounding.
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 10-4 Bond Prices (LO1, CFA3)
A bond with 20 years until maturity has a coupon rate of 7.4 percent and a yield to maturity of 6.1 percent. What is the price of the bond?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 10-3 Bond Prices (LO1, CFA3)
A bond has a coupon rate of 8.9 percent and 5 years until maturity. If the yield to maturity is 7.7 percent, what is the price of the bond?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 10-2 Bond Yields (LO1, CFA2)
Rolling Company bonds have a coupon rate of 7.80 percent, 17 years to maturity, and a current price of $1,276. What is the YTM? The current yield?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Problem 10-1 Bond Prices (LO1, CFA5)
Aloha, Incorporated, has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 9-25 Effective Annual Rate (LO2, CFA1)
You have a car loan with a nominal rate of 5.65 percent. With interest charged monthly, what is the effective annual rate (EAR) on this loan?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 9-24 Treasury Bills (LO1, CFA1)
A Treasury bill that settles on May 18, 2022, pays $100,000 on August 21, 2022. Assuming a discount rate of .48 percent, what are the price and bond equivalent yield? Use Excel to answer this question.
Note: Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places.
Problem 9-23 Expected Inflation Rates (LO4, CFA3)
Consider the following spot interest rates for maturities of one, two, three, and four years.
r1 = 4.8%
r2 = 5.2%
r3 = 5.9%
r4 = 6.7%
Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next four years?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Problem 9-21 Forward Interest Rates (LO3, CFA7)
Consider the following spot interest rates for maturities of one, two, three, and four years.
r1 = 3.7%
r2 = 4.2%
r3 = 4.9%
r4 = 5.7%
What are the following forward rates, where f1,k refers to a forward rate for the period beginning in one year and extending for k years?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Problem 9-13 Money Market Prices (LO1, CFA1)
The treasurer of a large corporation wants to invest $34 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 4.30 percent; that is, the EAR for this investment is 4.30 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 107 days, what are the bond equivalent and discount yields on this investment?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.
Problem 9-12 Treasury Bills (LO1, CFA1)
A Treasury bill purchased in January 2024 has 121 days until maturity and a bank discount yield of 4.28 percent. Assume a $100 face value.
a. What is the price of the bill as a percentage of face value?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
b. What is the bond equivalent yield?
Note: Use 366 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.
Problem 9-11 Treasury Bills (LO1, CFA1)
A Treasury bill with 119 days to maturity is quoted at 97.630. What are the bank discount yield, the bond equivalent yield, and the effective annual return?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.
Problem 9-10 Treasury Bill Prices (LO1, CFA1)
A U.S. Treasury bill with 93 days to maturity is quoted at a discount yield of 2.40 percent. Assume a $1 million face value. What is the bond equivalent yield?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.
Problem 9-9 Treasury Bill Prices (LO1, CFA1)
How much would you pay for a U.S. Treasury bill with 108 days to maturity quoted at a discount yield of 2.41 percent? Assume a $1 million face value.
Note: Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 9-8 Treasury Bill Prices (LO1, CFA1)
A U.S. Treasury bill with 89 days to maturity is quoted at a discount yield of 1.35 percent. Assume a $1 million face value. What is the bond equivalent yield?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.
Problem 9-7 Treasury Bill Prices (LO1, CFA1)
What is the price of a U.S. Treasury bill with 89 days to maturity quoted at a discount yield of 1.35 percent? Assume a $1 million face value.
Note: Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.
Problem 9-6 Fisher Effect (LO4, CFA3)
Your investments increased in value by 15.9 percent last year, but your purchasing power increased by only 7.8 percent. What was the approximate inflation rate?
Note: Enter your answer as a percent rounded to 1 decimal place.
Problem 9-5 Fisher Effect (LO4, CFA3)
A stock had a return of 7.7 percent last year. If the inflation rate was 1.4 percent, what was the approximate real return?
Note: Enter your answer as a percent rounded to 1 decimal place.
Problem 9-4 STRIPS (LO3, CFA1)
What is the yield to maturity on a Treasury STRIPS with 13 years to maturity and a quoted price of 58.779?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 9-3 STRIPS (LO3, CFA6)
A Treasury STRIPS is quoted at 57.001 and has 11 years until maturity. What is the yield to maturity?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Problem 9-2 STRIPS (LO3, CFA6)
A Treasury STRIPS matures in 9 years and has a yield to maturity of 12.4 percent. Assume the par value is $100,000.
a. What is the price of the STRIPS?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. What is the quoted price?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Problem 9-1 STRIPS (LO3, CFA6)
What is the price of a Treasury STRIPS with a face value of $100 that matures in 5 years and has a yield to maturity of 5.5 percent?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
