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Locate the Treasury bond in Figure 6.4 maturing in December 2026. Assume a $2,000 par value.
a. Is this a premium or discount bond?
b. What is its current yield?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.
c. What is its yield to maturity?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g.,32.161.
d. What is the bid-ask spread in dollars?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g.,32.161.
Answer is complete but not entirely correct.
\table[[a. Premium/Discount,Premium bond o.,],[b. Current yield,16.48,%
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