Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Locate the Treasury bond in Figure 7.4 maturing in May 2030. Assume a $10,000 par value. a. Is this a premium or a discount bond?

image text in transcribed
image text in transcribed
Locate the Treasury bond in Figure 7.4 maturing in May 2030. Assume a $10,000 par value. a. Is this a premium or a discount bond? b. What is its current yield? (Do not round intermediate calculations. 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. Enter your answer as a percent rounded to 3 decimal places, e.g., 32.162.) d. What is the bid-ask spread in dollars? (Do not round Intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) a. Premium or discount bond b. Current yield c. Yield to maturity d. Bid-ask spread % % Figure 74.jpg 715x1,053 plucis Treasury Notes and Bonds Asked Yield 1160 Chg 0.0391 0.0625 0.1016 1286 1558 1.857 2.004 2.096 2.210 Maturity 11/15/2018 4/15/2019 4/30/2020 8/15/2021 7/31/2022 2/28/2023 5/15/2004 8/15/2025 8/15/2026 8/15/2027 8/15/2018 11/15/2008 2/15/2009 8/25/2029 5/15/2030 2/15/2031 2/15/2036 2/15/2037 5/15/2037 5/18/2038 2/15/2039 8/15/2039 2/15/1040 11/15/2040 2/15/2041 2/15/2042 2/15/2043 5/15/2043 2/15/2044 2/15/2045 11/11/2046 2.262 2.380 2.414 Coupon 1.250 0.875 1.125 8.125 2.000 1.500 2.500 6.875 1.500 6.375 5.500 5250 5.950 6.125 6.250 5375 4.500 4.750 5.000 4.500 3-500 4.500 4.025 Bid 100.1484 99.0703 98.5938 127.4844 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 128.065 110.9844 Asked 100.1641 99.0859 98.6094 127-5000 99.9766 96.5859 101.9531 135.8594 92.4922 136.8438 130.3516 125.2188 125.8203 139.2500 142.6406 134-4063 198.1406 131.8516 136.0156 128. 12:50 1110469 127.5547 129.7813 123-4063 132.5000 103-388 103.1719 08 1906 119.78 0.2344 0.3266 0.2500 0.3125 0-3438 0.2969 0.4688 0.4531 0.4453 0.4609 0.5391 0.5938 ogas 0.7031 0.7500 0.7696 0.6875 0.6406 0.7344 0.6953 0.7422 0.7578 0.6484 0.625 05605 0.6484 0.6016 2.485 9-478 2.478 2.478 2.470 2.618 2.688 2.690 2.749 2.824 2.899 2.855 2.885 2.872 2.934 2.950 4.750 3.125 3.125 2.875 3625 129.7188 123-3438 132.4688 1033516 103.1406 98 3594 113.7266 90.7578 981172 2968 90.789 2.500 2.875 2.939 2.987 2.969 0.6719

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Text And Cases

Authors: W. Robert Knechel, Knechel

1st Edition

0538819340, 9780538819343

More Books

Students also viewed these Accounting questions