Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using the Treasury bond maturing in September 2025. Assume a par value of $10,000. Maturity Coupon Bid Asked Change Asked Yield 9/30/2025 3 113.214 113.22
Using the Treasury bond maturing in September 2025. Assume a par value of $10,000.
Maturity | Coupon | Bid | Asked | Change | Asked Yield |
---|---|---|---|---|---|
9/30/2025 | 3 | 113.214 | 113.22 | -0.042 | 0.293 |
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
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started