Locate the Treasury bond in Figure 6.4 maturing in November 2050. 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. ני Locate the Treasury bond in Figure 6.4 maturing in November 2050. 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. a. Premium/Discount b. Current yield c. Yield to maturity d. Bid-ask spread Discount bond % %
Locate the Treasury bond in Figure 6.4 maturing in November 2050. 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. ני Locate the Treasury bond in Figure 6.4 maturing in November 2050. 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. a. Premium/Discount b. Current yield c. Yield to maturity d. Bid-ask spread Discount bond % %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Locate the Treasury bond in Figure 6.4 maturing in November 2050. 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.
ני
Locate the Treasury bond in Figure 6.4 maturing in November 2050. 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.
a. Premium/Discount
b. Current yield
c. Yield to maturity
d. Bid-ask spread
Discount bond
%
%
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