Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Locate the Treasury bond in Eigure 63 maturing in August 2022. Assume a $1,000 par value Is this a premium or a discount bond? Discount

image text in transcribed
image text in transcribed
Locate the Treasury bond in Eigure 63 maturing in August 2022. Assume a $1,000 par value Is this a premium or a discount bond? Discount bond What is its current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to a decimat places, #.9.12.16.) Current yield 428% What is its yield to maturity? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places. e.9.52.181) Yield to maturity 2688% What is the bid ask spread in dollars? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g. 32,161.) Bid-ask spread 0.031 FIGURE 6.3 U.S. Treasury Quotes Treasury note and bond data are representative over the counter quotations as of 3 pm. Eastern time. Sample Wall Street Journal U.S. Treasury note and bond prices Askod Yield Maturity Coupon Bid Asked Chg 1/31/2017 3/15/2018 3/31/2019 8/15/2022 11/15/2024 2/15/2025 2/15/2026 11/15/2027 8/15/2028 8/15/2029 5/15/2030 2/15/2031 2/15/2036 2/15/2037 2/15/2038 11/15/2039 2/15/2040 5/15/2041 8/15/2042 11/15/2043 11/15/2044 2/15/2045 3.125 1.000 1.625 1.625 7.500 2.000 6.000 6.125 5.500 6.125 6.250 5.375 4.500 4.750 4.375 4375 4.625 4.375 2.750 3.750 3.000 2500 104.6563 99.8047 100.8047 97.8281 147.6797 99.0078 137.3203 142 3906 136.7344 146.1719 149.4063 139.3828 132.8906 137.3047 130.9375 1316406 136.4375 133.1250 101.1406 121.5703 106.3125 96.0313 104.6719 99.8203 100.8203 97.8438 147.6953 99.0234 137.3828 142.4531 136.7969 146.2344 149,4688 139.4453 132.9531 137.3672 131.0000 131.6719 136.4688 133.1563 101 1719 121.6016 106 3438 96.0625 -0.0234 -0.0078 -0.0625 -0.0781 -0.1797 -0.1563 -0.1328 -0.1719 -0.1250 -0.1172 -0.0938 -0.1250 -0.1094 -0,0625 -0.1797 -0.2500 -0.2578 -0.2891 -0.2578 -0.3359 -0.3438 0.4375 0.619 1.061 1.415 1.938 2.038 2.110 2.142 2.253 2.298 2.331 2.353 2.383 2.473 2.521 2576 2.623 2.622 2.617 2689 2.667 2688 2693 To bury Treasury bonds directly from the government, go to www. treasurydirect.gov. Source: www.wsj.com, 3/13/2015

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Finance Big Data Start-ups And The Future Of Financial Services

Authors: Perry Beaumont

1st Edition

0367146797, 978-0367146795

More Books

Students also viewed these Finance questions

Question

=+2. A products final total assorted features

Answered: 1 week ago