Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Locate the Treasury bond in Figure 8.4 maturing in February 2043. Assume a par value of $20,000 6 Is this a premium or a discount
Locate the Treasury bond in Figure 8.4 maturing in February 2043. Assume a par value of $20,000 6 Is this a premium or a discount bond? 10 Discount bond points Premium bond eBook 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.) What is its yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) What is the bid-ask spread in dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Print Current yield % YTM Bid-ask spread % Figure 8.4 mple Wall Street Asked Maturity 11/15/2018 Bid Yld Coupon Asked Chg Journal U.S. -0.0313 1.342 Treasury Bond 3.75 102.7266 102.7422 3/31/2019 -0.0078 1.36 1.625 100.3828 100.3984 Prices -0.0078 3/15/2020 100.3516 100.3672 1.474 1.625 10/31/2021 1.25 98.0469 98.0625 -0.0313 1.74 2/15/2023 7.125 126.8516 126.8672 -0.0625 1.872 -0.1094 5/15/2024 102.7969 102.8125 2.045 2.5 8/15/2027 6.375 137.0781 -0.1016 2.189 137.0625 -0.1484 2.272 11/15/2028 5.25 129.1328 129.1953 2/15/2029 129.6094 2.285 5.25 129.5469 -0.1719 2/15/2036 4,5 129.7578 129.8203 -0.2344 2,473 5/15/2037 5 137.8594 137.9219 -0.2031 2.537 130.2656 5/15/2038 4.5 130.3281 -0.2109 2.594 2/15/2039 113.9297 -0.1719 2.644 3.5 113.8672 11/15/2039 128.4688 -0.1875 2.665 4.375 128.4063 2.68 5/15/2040 4.375 128.5781 128.6406 -0.2266 8/15/2040 3.875 119.9922 120.0547 -0.1953 2.696 3.125 106.8203 106.8516 -0.1641 2.735 11/15/2041 5/15/2042 104.4063 104.4375 -0.1797 2.751 99.75 8/15/2042 2,75 99.7188 -0.1875 2.764 -0.125 11/15/2042 2.768 2.75 99.6484 99.6797 2/15/2043 106.5156 -0.1172 2.766 3.125 106.4844 101.7344 5/15/2043 2.875 101.7656 -0.1328 2.778 5/15/2044 3.375 111.1953 111.2266 -0.2266 2.776 103.9375 103.9688 -0.1875 2.79 11/15/2044 3 94.1484 -0.1719 2/15/2045 94.1172 2.808 2.5 -0.1875 5/15/2045 3 103.8438 103.875 2.798 8/15/2045 2.804 2.875 101.3438 101.375 -0.1719 11/15/2045 103.8438 3 103.8125 -0.1797 2.802 5/15/2046 2.5 93.75 93.7813 -0.1797 2.818 11/15/2046 101.2188 101.25 -0.1719 2.812 2,875 5/15/2047 103.8438 -0.1719 2.808 3 103.8125 8/15/2047 -0.1484 2.811 2.75 98.7422 98.7734 Locate the Treasury bond in Figure 8.4 maturing in February 2043. Assume a par value of $20,000 6 Is this a premium or a discount bond? 10 Discount bond points Premium bond eBook 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.) What is its yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) What is the bid-ask spread in dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Print Current yield % YTM Bid-ask spread % Figure 8.4 mple Wall Street Asked Maturity 11/15/2018 Bid Yld Coupon Asked Chg Journal U.S. -0.0313 1.342 Treasury Bond 3.75 102.7266 102.7422 3/31/2019 -0.0078 1.36 1.625 100.3828 100.3984 Prices -0.0078 3/15/2020 100.3516 100.3672 1.474 1.625 10/31/2021 1.25 98.0469 98.0625 -0.0313 1.74 2/15/2023 7.125 126.8516 126.8672 -0.0625 1.872 -0.1094 5/15/2024 102.7969 102.8125 2.045 2.5 8/15/2027 6.375 137.0781 -0.1016 2.189 137.0625 -0.1484 2.272 11/15/2028 5.25 129.1328 129.1953 2/15/2029 129.6094 2.285 5.25 129.5469 -0.1719 2/15/2036 4,5 129.7578 129.8203 -0.2344 2,473 5/15/2037 5 137.8594 137.9219 -0.2031 2.537 130.2656 5/15/2038 4.5 130.3281 -0.2109 2.594 2/15/2039 113.9297 -0.1719 2.644 3.5 113.8672 11/15/2039 128.4688 -0.1875 2.665 4.375 128.4063 2.68 5/15/2040 4.375 128.5781 128.6406 -0.2266 8/15/2040 3.875 119.9922 120.0547 -0.1953 2.696 3.125 106.8203 106.8516 -0.1641 2.735 11/15/2041 5/15/2042 104.4063 104.4375 -0.1797 2.751 99.75 8/15/2042 2,75 99.7188 -0.1875 2.764 -0.125 11/15/2042 2.768 2.75 99.6484 99.6797 2/15/2043 106.5156 -0.1172 2.766 3.125 106.4844 101.7344 5/15/2043 2.875 101.7656 -0.1328 2.778 5/15/2044 3.375 111.1953 111.2266 -0.2266 2.776 103.9375 103.9688 -0.1875 2.79 11/15/2044 3 94.1484 -0.1719 2/15/2045 94.1172 2.808 2.5 -0.1875 5/15/2045 3 103.8438 103.875 2.798 8/15/2045 2.804 2.875 101.3438 101.375 -0.1719 11/15/2045 103.8438 3 103.8125 -0.1797 2.802 5/15/2046 2.5 93.75 93.7813 -0.1797 2.818 11/15/2046 101.2188 101.25 -0.1719 2.812 2,875 5/15/2047 103.8438 -0.1719 2.808 3 103.8125 8/15/2047 -0.1484 2.811 2.75 98.7422 98.7734
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started