Use the following Treasury quote to answer the following questions.

Maturity	Coupon Rate (%)	Bid Price	Asked Price	Asked Yield (%)
5/15/2040	4.375	158.0640	158.0840	1.131

1. Is the bond selling at discount, par, or premium?
2. What price would an investor pay to buy the bond?
3. What would be the total cost for an investor to buy $1,000 of par value?
4. What price would a dealer pay to buy the bond?
5. What would be the total cost for a dealer to buy $1,000 of par value?
6. If a dealer bought and sold $1,000,000 of par value, how much would the dealer earn?

7. Explain how you know the Treasury that matures in 2040 is a bond rather than a note.