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Locate the Treasury bond in Figure 6.3 maturing in August 2041. Assume a $1,000 par value. a. Is this a premium or discount bond? b.

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Locate the Treasury bond in Figure 6.3 maturing in August 2041. Assume a $1,000 par value. a. Is this a premium or 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 3 decimal places, e.g., 32.161.) \begin{tabular}{|c|c|c|c|c|c|} \hline Maturity & coupon & Bid & Asked & Chg & AskedYield \\ \hline 1/31/2019 & 1.500 & 99.5469 & 99.5625 & -0.0078 & 2.205 \\ \hline 12/31/2021 & 2.125 & 97.8906 & 97.9063 & 0.0703 & 2.749 \\ \hline 1/31/2022 & 1.500 & 95.6563 & 95.6719 & 0.0547 & 2.762 \\ \hline 2/28/2023 & 2.625 & 99.2109 & 99.2266 & 0.1172 & 2.801 \\ \hline 9/30/2023 & 1.375 & 92.7969 & 92.8125 & 0.1172 & 2.847 \\ \hline 2/29/2024 & 2.125 & 96.1172 & 96.1328 & 0.1484 & 2.864 \\ \hline 7/31/2024 & 2.125 & 95.7344 & 95.7500 & 0.1172 & 2.887 \\ \hline 1/31/2025 & 2.500 & 97.6328 & 97.6484 & 0.1953 & 2.892 \\ \hline 4/30/2025 & 2.875 & 99.8359 & 99.8516 & 0.2109 & 2.899 \\ \hline 11/15/2026 & 6.500 & 126.6406 & 126.6563 & 0.3125 & 2.906 \\ \hline 2/15/2029 & 5.250 & 120.9453 & 121.0078 & 0.4063 & 2.941 \\ \hline 5/15/2030 & 6.250 & 132.8984 & 132.9609 & 0.4688 & 2.949 \\ \hline 2/15/2036 & 4.500 & 120.9375 & 121.0000 & 0.5625 & 2.964 \\ \hline 5/15/2037 & 5.000 & 129.0938 & 129.1563 & 0.6641 & 2.973 \\ \hline 11/15/2039 & 4.375 & 121.3047 & 121.3672 & 0.6953 & 3.014 \\ \hline 5/15/2040 & 4.375 & 121.5313 & 121.5938 & 0.7500 & 3.021 \\ \hline 8/15/2041 & 3.750 & 111.6875 & 111.7500 & 0.7500 & 3.040 \\ \hline 5/15/2042 & 3.000 & 99.1875 & 99.2188 & 0.7266 & 3.046 \\ \hline 2/15/2043 & 3.125 & 101.1641 & 101.1953 & 0.7344 & 3.056 \\ \hline 2/15/2044 & 3.625 & 110.0313 & 110.0625 & 0.6875 & 3.056 \\ \hline 8/15/2046 & 2.250 & 84.6797 & 84.7109 & 0.6016 & 3.064 \\ \hline 5/15/2047 & 3.000 & 98.7578 & 98.7891 & 0.6953 & 3.063 \\ \hline 5/15/2048 & 3.125 & 101.1875 & 101.2188 & 0.7422 & 3.062 \\ \hline \end{tabular} Source www wsj.com, 6/14/2018

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