Question
Locate the Treasury bond in Figure 6.3 maturing in February 2027. Is this a premium or a discount bond? What is its current yield? What
Locate the Treasury bond in Figure 6.3 maturing in February 2027. Is this a premium or a discount bond? What is its current yield? What is its yield to maturity? Yield to maturity What is the bid-ask spread? Bid-ask spread?
It is a premium bond because it is worth more than 100% bond value.
The current image of Figure 6.3 is not accurate. So here is the info for this item maturing in Feb. 2027:
Coupon Bid Asked Chg Asked Yield
6.625 137:25 137:27 +115 3.7165
There is just no related info in my book for what the question asks. It only showed us what the coupon rate was and how to determine the bid price and previous day's asking price.
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