oblem 19-15 A Treasury bond with a maturity of 25 years has an ask price quoted
ID: 2639251 • Letter: O
Question
oblem 19-15
A Treasury bond with a maturity of 25 years has an ask price quoted at 139:31. The coupon rate is 4.9 percent, paid semiannually. What is the yield to maturity of this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)
A Treasury bond with a maturity of 25 years has an ask price quoted at 139:31. The coupon rate is 4.9 percent, paid semiannually. What is the yield to maturity of this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
139.31= 24.5PVIFA(YTM,50)+1000PVIF(YTM,50)
YTM= (2x1.36)= 2.72%
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