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Locate the Treasury bond in Figure 6.4 maturing in February 2043. Assume a $1,000 par value. a. Is this a premium or discount bond? b.
Locate the Treasury bond in Figure 6.4 maturing in February 2043. Assume a $1,000 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 2 decimal places, e.g., 32.16. 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 3 decimal places, e.g., 32.161. 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 bond prices Source: www.wsj.com, January 22, 2021
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