\fLO2 13. Using Treasury Quotes Locate the Treasury issue in ( Figure 6.4 maturing in August 2029. What is its coupon rate? What is the dollar bid price for a $10.000 par value bond? What was the previous day's asked price for a $ 10.000 par value bond? LO2 14. Using Treasury Quotes Locate the Treasury bond in U Figure 6.4 maturing in February 2037. 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 for a $ 10.000 par value bond? LO2 15. Zero Coupon Bonds You find a zero coupon bond with a par value of $ 10.000 and 24 years to maturity. If the yield to maturity on this bond is 4 2 percent what is the price of the bond? Assume semiannual compounding periods.Passi Figure 6.4 Sample Wall Street Journal U.S. Treasury note and bond prices U.S. Treasury Quotes Treasury note and bond data are representative over-the-counter quotations as of 3 p.m. Eastern time. Maturity Coupon Asked Bid Asked Chg Yield 8/15/2021 2.125 101.040 101.044 -0.006 0.077 2/28/2022 1.125 101.036 101.042 -0.006 0.089 3/31/2023 1.500 102.310 102.314 -0.004 0.128 4/30/2025 0.375 100.042 100.046 0.012 0.340 12/31/2026 1.750 106.256 106.262 0.024 0.579 11/15/2027 6.125 136.020 136.024 0.710 0.688 11/15/2028 3.125 117.020 117.030 0.708 0.856 8/15/2029 6.125 143.034 143.044 0.720 0.880 5/15/2030 6.250 147.014 147.024 0.728 0.951 2/15/2031 5.375 141.126 141.136 0.026 1.028 2/15/2037 4.750 148.126 148.136 0.090 1.378 5/ 15/2038 4.500 146.230 146.250 0.098 1.437LO2 1. Interpreting Bond Yields Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond now? The YTM? LO2 2. Interpreting Bond Yields Suppose you buy a 7 percent coupon, 20-year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why? LO2 3. Bond Prices Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of ( 1,000, 27 years to maturity, and a coupon rate of 3.6 percent paid annually. If the YTM is 3.2 percent. what is the current bond price in euros? LO2 4. Bond Yields A Japanese company has a bond that sells for 96.318 percent of its 100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? Page 204 LO2 5. Coupon Rates Nikita Enterprises has bonds on the market making annual payments. with eight years to maturity, a par value of $1,000, and selling for $962. At this price. the bonds yield 5.1 percent. What must the coupon rate be on the bonds? LO2 6. Bond Prices Westco Co. issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannual payments and have a par value of $ 1,000. If the Y TM on these bonds is .5 percent, what is the current price of the bond in