Locate the Treasury bond in Figure 7.4 maturing in August 2039. Is this a premium or a

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Locate the Treasury bond in Figure 7.4 maturing in August 2039. 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 in dollars? Assume a par value of $10,000.

Figure 7.4:

Maturity 8/31/2017 5/15/2018 2/28/2019 2/29/2020 8/15/2021 11/15/2022 8/15/2023 2/15/2024 2/15/2026 8/15/2026

SELECTED INTERNATIONAL GOVERNMENT 10-YEAR BOND YIELDS United States United Kingdom Japan Germany Australia

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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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