Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Locate the Treasury bond in Figure 8.4 maturing in February 2023. Assume a par value of $10,000. Is this a premium or a discount bond?

image text in transcribed

image text in transcribed

Locate the Treasury bond in Figure 8.4 maturing in February 2023. Assume a par value of $10,000. Is this a premium or a discount bond? Discount bond O Premium bond 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.) Current yield YTM Bid-ask spread % Asked Yld 1.342 1.36 Coupon 3.75 1.625 1.625 1.25 7.125 2.5 6.375 5.25 5.25 4.5 Maturity 11/15/2018 3/31/2019 3/15/2020 10/31/2021 2/15/2023 5/15/2024 8/15/2027 11/15/2028 2/15/2029 2/15/2036 5/15/2037 5/15/2038 2/15/2039 11/15/2039 5/15/2040 8/15/2040 11/15/2041 5/15/2042 8/15/2042 11/15/2042 2/15/2043 5/15/2043 5/15/2044 11/15/2044 2/15/2045 5/15/2045 8/15/2045 11/15/2045 5/15/2046 11/15/2046 5/15/2047 8/15/2047 4.5 3.5 4.375 4.375 3.875 3.125 3 2.75 2.75 Bid 102.7266 100.3828 100.3516 98.0469 126.8516 102.7969 137.0625 129.1328 129.5469 129.7578 137.8594 130.2656 113.8672 128.4063 128.5781 119.9922 106.8203 104.4063 99.7188 99.6484 106.4844 101.7344 111.1953 103.9375 94.1172 103.8438 101.3438 103.8125 93.75 101.2188 103.8125 98.7422 Asked 102.7422 100.3984 100.3672 98.0625 126.8672 102.8125 137.0781 129. 1953 129.6094 129.8203 137.9219 130.3281 113.9297 128.4688 128.6406 120.0547 106.8516 104.4375 99.75 99.6797 106.5156 101.7656 111.2266 103.9688 94.1484 103.875 101.375 103.8438 93.7813 101.25 103.8438 98.7734 Chg -0.0313 -0.0078 -0.0078 -0.0313 -0.0625 -0.1094 -0.1016 -0.1484 -0.1719 -0.2344 -0.2031 -0.2109 -0.1719 -0.1875 -0.2266 -0.1953 -0.1641 -0.1797 -0.1875 -0.125 -0.1172 -0.1328 -0.2266 -0.1875 -0.1719 -0.1875 -0.1719 -0.1797 -0.1797 -0.1719 -0.1719 -0.1484 1.474 1.74 1.872 2.045 2.189 2.272 2.285 2.473 2.537 2.594 2.644 2.665 2.68 2.696 2.735 2.751 2.764 2.768 2.766 2.778 2.776 2.79 2.808 2.798 2.804 2.802 2.818 2.812 2.808 2.811 2.875 3.375 3 2.5 3 2.875 3 2.5 2.875 2.75

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

The International Handbook Of Shipping Finance

Authors: Manolis G. Kavussanos, Ilias D. Visvikis

1st Edition

113746545X, 978-1137465450

More Books

Students also viewed these Finance questions