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Please hep me with letter c and pleas eshow calculations. Please help me to answer letter c and please show calculations. Attached please find 2
Please hep me with letter c and pleas eshow calculations.
Please help me to answer letter c and please show calculations. Attached please find 2 screenshots of this problem.
Locate the Treasury bond in Figure 8.5 maturing in August 2045. Assume a par value of $20,000. Is this a premium or a discount bond? 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.) Locate the Treasury bond in Figure 8.5 maturing in August 2045. Assume a par value of $20,000. Is this a premium or a discount bond? 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.) Fugure 8 Sample Wall Street Journal U.S. Treasury Bond Prices Locate the Treasury bond in Figure 8.5 maturing in August 2045. Assume a par value of $20,000. Is this a premium or a discount bond? 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.) Step by Step Solution
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