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Locate the Treasury bond in Figure 8.5 maturing in May 2030. Assume a par value of $10,000. Is this a premium or a discount bond?

Locate the Treasury bond in Figure 8.5 maturing in May 2030. Assume a par value of $10,000.

Is this a premium or a discount bond?

Multiple choice

Discount bond

Premium bond

a. What is its current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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.)

image text in transcribed

Figure 8.5 Sample Wall Street Journal U.S. Treasury Bond Prices

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