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Locate the Treasury bond in Figure 6.3 maturing in May 2042. Assume a $2,000 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 May 2042. Assume a $2,000 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.) X Answer is complete but not entirely correct. a. Discount bond b. 2.22 % Premium/Discount Current yield Yield to maturity Bid-ask spread C. 2.289 X % d. $ 0.312 x

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