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Locate the Treasury bond in Figure 6.4 maturing in February 2037. Assume a $10,000 par value. a. Is this a premium or discount bond?

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Locate the Treasury bond in Figure 6.4 maturing in February 2037. Assume a $10,000 par value. a. Is this a premium or discount bond? b. What is its current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g.. 32.161. c. What is its yield to maturity? Note: 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? Note: 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 % % U.S. Treasury Quotes Treasury note and bond data are representative over-the-counter quotations as of 3 p.m. Eastern time. Figure 6.4 Sample Wall Street Journal U.S. Treasury note and bonderices Asked Maturity Coupon Bid Asked Change Yield 8/15/2021 2.125 101.040 101.044 -0.006 0.077 2/28/2022 1.125 101.036 101.042 -0.006 0.089 3/31/2023 1.500 102.310 102.314 -0.004 0.128 4/30/2025 0.375 100.042 100.046 0.012 0.340 12/31/2026 1.750 106.256 106.262 0.024 0.579 11/15/2027 6.125 136.020 136.024 0.710 0.688 11/15/2028 3.125 117.020 117.030 0.708 0.856 8/15/2029 6.125 143.034 143.044 0.720 0.880 5/15/2030 6.250 147.014 147.024 0.728 0.951 2/15/2031 5.375 141.126 141.136 0.026 1.028 2/15/2037 4.750 148.126 148.136 0.090 1.378 5/15/2038 4.500 146.230 146.250 0.098 1.437 5/15/2039 4.250 144.006 144.026 0.780 1.489 2/15/2040 4.625 151.024 151.044 0.808 1.523 2/15/2041 4.750 154.232 154.252 0.126 1.559 2/15/2043 3.125 126.162 126.182 0.112 1.679 8/15/2044 3.125 126.312 127.012 0.120 1.724 11/15/2045 3.000 125.006 125.026 0.784 1.749 5/15/2046 2.500 114.194 114.214 0.098 1.777 5/15/2047 3.000 125.200 125.220. 0.100 1.774 8/15/2048 3.000 126.014 126.034 0.780 1.795 11/15/2049 2.375 112.090 112.110 0.778 1.822 11/15/2050 1.625 94.242 94.262 0.090 1.852 Source: www.wsj.com, January 22, 2021.

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