10. YLD TO MATURITY 2.616 2.643 2.824 MATURITY COUPON RATE BID ASKED CHG 2020 Feb 15 2025 Feb 15 2036 Feb 15 8.500 7.625 4.500 106.0313 127.6641 122.4844 106.0469 127.6797 122.5469 0.0859 0.2969 0.5625 Consider the Treasury bond maturing February 15, 2025 above. a.) Is it selling at a premium or at a discount to face value? b.) How much would you pay for a $1,000 face value bond? c.) Did the price increase or decrease over the previous day? d.) How much interest does the bond pay each year per $1,000 of face value? e.) How much will the Treasury pay to the investor on 2/15/2025 (per $1,000 of face value)? (20%) urrent yield-annual interest payment/current price nnual interest payment on a bond Face Value x Coupon Rate uivalent taxable yield Imuni/(1-tax rate) where rmuni is the rate on the tax-free municipal bond ter tax yield Rate on taxable bond x (1-tax rate)