Question
Use the following Treasury quote to answer parts a i. Maturity Coupon Rate (%) Bid Price Asked Price Asked Yield (%) 2/15/2050 2.000 115.0200 115.0400
Use the following Treasury quote to answer parts a i.
| Maturity | Coupon Rate (%) | Bid Price | Asked Price | Asked Yield (%) |
| 2/15/2050 | 2.000 | 115.0200 | 115.0400 | 1.1381 |
| a. Does the Treasury quote identify the yield to maturity? If so, what is the yield to maturity? |
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| b. Does the Treasury quote identify the coupon rate? If so, what is the coupon rate? |
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| c. Does the Treasury quote identify the current yield? If so, what is the current yield? |
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| d. Is the note/bond selling at discount, par, or premium? |
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| e. What price would an investor pay to buy the bond? |
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| f. What would be the total cost for an investor to buy $50,000 of par value? |
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| g. What price would a dealer pay to buy the bond? |
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| h. What would be the total cost for a dealer to buy $50,000 of par value? |
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| i. If a dealer bought and sold $400,000 of par value, how much would the dealer earn? |
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Please answer A-I
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
