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