Locate the Treasury bond in Figure 8.5 maturing in September 2025. Assume a par value of $10,000. Is this a premium or a discount bond? O Discount bond Premium bond 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.) a. Current yield b. YTM c. Bid-ask spread % %
Locate the Treasury bond in Figure 8.5 maturing in September 2025. Assume a par value of $10,000. Is this a premium or a discount bond? O Discount bond Premium bond 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.) a. Current yield b. YTM c. Bid-ask spread % %
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 20P
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Data given:
Maturity Date: 9/30/2025
Coupon=3%
Bid=113.214
Asked=113.22
Change=-0.042
Asked Yield=0.293%
Par value=$10,000
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