Locate the Treasury bond in Figure 7.4 maturing in February 2040. Assume a par value of $10,000.

Is this a premium or a discount bond?

• Discount bond

• Premium bond

a.	What is its current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.)
b.	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.)
c.	What is the bid-ask spread in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Treasury Notes and Bonds Asked Yield Coupon Asked Chg 0.0391 1.160 1.250 0.875 Bid 100.1484 99.0703 98.5938 127-4844 100.1641 99.0859 98.6094 1.286 0.0625 0.1016 1.125 1.558 0.2344 1.857 8.125 2.000 0.2266 0.2500 2.004 2.096 1.500 127.5000 99.9766 96.5859 101.9531 135.8594 92.4922 2.500 2.210 0.3125 0.3438 6.875 2.262 1.500 2.380 6.375 0.2969 0.4688 0.4531 2.414 5-500 5.250 5.250 99.9609 96.5703 101.9375 135.8438 92.4766 136.8281 130.2891 128.1563 128.7578 139.1875 142.5781 134.3438 128.0781 131.7891 135.9531 136.8438 130.3516 128.2188 128.8203 0.4453 2.473 2.485 2.478 0.4609 6.125 139.2500 2.478 0.5391 0.5938 Maturity 11/15/2018 4/15/2016 4/30/2020 8/15/2021 7/31/2022 2/28/2023 5/15/2024 8/15/2025 8/15/2026 8/15/2027 8/15/2028 11/15/2028 2/15/2029 8/15/2029 5/15/2030 2/15/2031 2/15/2036 2/15/2037 5/15/2037 5/15/2038 2/15/2039 8/15/2039 2/15/2040 11/15/2040 2/15/2041 2/15/2042 2/15/2043 5/15/2043 2/15/2044 2/15/2045 11/15/2046 6.250 5-375 4-500 4.750 0.5625 0.7031 2.478 2.470 2.618 2.688 142.6406 134.4063 128.1406 131.8516 136.0156 128.1250 111.0469 127.5547 5.000 0.7500 0.7656 0.6875 2.690 128.0625 0.6406 4.500 3-500 4.500 4.625 2.749 2.824 2.839 0.7344 0.6953 129.7813 2.855 4.250 0.7422 110.9844 127.4922 129.7188 123.3438 132.4688 103-3516 103.1406 98.3594 112.7266 2.885 2.872 4.750 0.7578 0.6484 123.4003 132.5000 103-3828 103.1719 98.3906 112.7578 90.7891 2.934 2.950 3.125 3.125 2.875 3.625 2.500 0.6250 0.5625 2.963 0.6484 2.939 2.987 0.6016 90.7578 98.1172 2.875 98.1484 0.6719 2.969