Locate the Treasury bond in Figure 5.4 maturing in May 2021. Assume a $1,000 par value. a. Is this a premium or a discount bond? b. What is its current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is its yield to maturity? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) d. What is the bid-ask spread in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) % a. Premium or discount b. Current yield c. Yield to maturity d. Bid-ask spread % FIGURE 5.4 Prices Sample Wall Street Journal U.S. Treasury Bond Treasury Bonds Bid Coupon 1.375 98.6563 100.5625 Asked 98.6719 100.5781 98.7656 2.625 2.125 Asked yield 2.472 2.371 2.381 2.434 2.456 2.500 98.75 2.125 Chg 0.1328 0.2578 0.5547 0.6719 0.8359 0.7891 0.8359 1.0469 98.1719 129.6328 98.1563 102.6563 123.6641 6.75 2.25 98.1875 129.6484 98.1719 102.6719 2.875 5.25 2.552 2.575 6.125 Maturity 3/31/2020 5/15/2021 2/29/2024 5/15/2025 8/15/2026 2/15/2027 5/15/2028 2/15/2029 8/15/2029 5/15/2030 2/15/2031 2/15/2036 2/15/2037 5/15/2037 5/15/2038 2/15/2039 8/15/2040 11/15/2041 5/15/2043 5/15/2044 132.7266 135.7656 123.6797 132.7891 135.8281 2.575 2.589 6.25 5.375 4.5 1.1406 1.1641 1.1797 1.5391 128.7344 2.595 125.5313 129.8438 4.75 2.637 2.662 2.665 5 1.6094 1.6563 1.6328 133.7344 126.9375 4.5 2.704 3.5 128.6719 125.4688 129.7813 133.6719 126.875 111.6172 117.1563 104.5547 99.7969 108.7969 102.0625 111.6797 117.2188 1.5078 1.5938 2.741 2.807 3.875 3.125 104.6172 2.849 1.4609 1.4922 2.875 99.8281 2.885 3.375 2.882 3 1.5625 1.4766 1.3984 11/15/2044 2/15/2045 2.884 2.5 2.899 108.8281 102.0938 92.7266 92.3906 97.0156 109.5078 2.5 1.4141 2.905 92.6953 92.3594 96.9844 109.4766 5/15/2046 8/15/2047 11/15/2048 2.904 2.75 3.375 1.5313 1.6563 2.897 Source: www.wsj.com, January 3, 2019