Locate the Treasury bond in Figure 6.3 maturing in February 2027. Is this a premium or a
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Locate the Treasury bond in Figure 6.3 maturing in February 2027. Is this a premium or a discount bond? What is its current yield? What is its yield to maturity? What is the bid-ask spread?
Figure 6.3
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Asked Maturity Coupon Bid Asked Chg Yield unch. 2009 May 15 5.500 101:01 101:02 0.0832 2009 May 31 4.875 101:03 101:03 0.2224 -1 101:08 2010 Feb 28 2.000 101:09 +2 0.7062 1.750 101:16 +8 2011 Nov 15 101:14 1.1883 2012 Nov 15 4.000 109:14 109:16 +19 1.3581 2013 Dec 31 1.500 98:29 98:30 +25 1.7322 2014 Nov 15 4.250 112:12 112:15 1.9294 +22 2015 Feb 15 11.250 148:31 +28 2.3683 149:00 4.875 115:21 115:22 +39 2016 Aug 15 2.5487 111:26 2017 Nov 15 4.250 111:24 +54 2.7168 105:27 2018 Feb 15 3.500 105:29 +52 2.7507 +53 2.7614 2018 May 15 2019 Aug 15 3.875 108:30 109:00 8.125 141:10 141:11 +62 3.3932 2020 Feb 15 8.500 +64 145:12 145:15 3.4730 2022 Aug 15 7.250 137:20 137:23 +90 3.6719 2023 Aug 15 6.250 128:19 128:21 +106 3.6755 147:25 2024 Nov 15 7.500 147:22 +118 3.5137 2025 Feb 15 7.625 149:19 149:21 +119 3.5270 2026 Nov 15 6.500 135:30 136:00 +110 3.7070 137:25 137:27 3.7165 2027 Feb 15 6.625 +115 2028 Aug 15 5.500 123:30 124:00 +110 3.7504 3.7577 2029 Feb 15 5.250 120:24 120:26 +105 2029 Aug 15 2030 May 15 6.125 133:27 133:29 +114 3.7382 6.250 136:13 136:16 3.7411 +112 2031 Feb 15 5.375 124:00 124:02 +106 3.7555 4.500 3.6316 2036 Feb 15 114:25 114:27 +116 119:25 +120 2037 Feb 15 4.750 119:23 3.6190 2037 May 15 5.000 124:15 124:18 +120 3.6056 2038 Feb 15 4.375 114:11 114:14 +116 3.5715 117:21 2038 May 15 4.500 117:23 +118 3.5240 2039 Feb 15 3.500 99:24 99:26 +109 3.5101
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This is a premium bond because it sells for more than 100 of face value The current yield ...View the full answer
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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