Locate the Treasury bond in Figure 8.4 maturing in May 2046. Assume a par value of $20,000.
Is this a premium or a discount bond?
What is its current yield?
What is its yield to maturity
What is the bid ask spread in dollars?
Locate the Treasury bond in Figure 8.4 maturing in May 2046. Assume a par value of $20,000.
Is this a premium or a discount bond?
What is its current yield?
What is its yield to maturity
What is the bid ask spread in dollars?
\begin{tabular}{|r|r|r|r|r|r|} \hline Maturity & Coupon & \multicolumn{1}{|c|}{ Bid } &
\multicolumn{1}{|c|}{ Asked } & \multicolumn{1}{|c|}{ Chg } & \multicolumn{1}{|c|}{ Yld }
\\ \hline 11/15/2018 & 3.75 & 102.7266 & 102.7422 & -0.0313 & 1.342 \\ \hline 3/31/2019 &
1.625 & 100.3828 & 100.3984 & -0.0078 & 1.36 \\ \hline 3/15/2020 & 1.625 & 100.3516 &
100.3672 & -0.0078 & 1.474 \\ \hline 10/31/2021 & 1.25 & 98.0469 & 98.0625 & -0.0313 &
1.74 \\ \hline 2/15/2023 & 7.125 & 126.8516 & 126.8672 & -0.0625 & 1.872 \\ \hline 5/15/2024
& 2.5 & 102.7969 & 102.8125 & -0.1094 & 2.045 \\ \hline 8/15/2027 & 6.375 & 137.0625 &
137.0781 & -0.1016 & 2.189 \\ \hline 11/15/2028 & 5.25 & 129.1328 & 129.1953 & -0.1484 &
2.272 \\ \hline 2/15/2029 & 5.25 & 129.5469 & 129.6094 & -0.1719 & 2.285 \\ \hline 2/15/2036
& 4.5 & 129.7578 & 129.8203 & -0.2344 & 2.473 \\ \hline 5/15/2037 & 5 & 137.8594 &
137.9219 & -0.2031 & 2.537 \\ \hline 5/15/2038 & 4.5 & 130.2656 & 130.3281 & -0.2109 &
2.594 \\ \hline 2/15/2039 & 3.5 & 113.8672 & 113.9297 & -0.1719 & 2.644 \\ \hline 11/15/2039
& 4.375 & 128.4063 & 128.4688 & -0.1875 & 2.665 \\ \hline 5/15/2040 & 4.375 & 128.5781 &
128.6406 & -0.2266 & 2.68 \\ \hline 8/15/2040 & 3.875 & 119.9922 & 120.0547 & -0.1953 &
2.696 \\ \hline 11/15/2041 & 3.125 & 106.8203 & 106.8516 & -0.1641 & 2.735 \\ \hline
5/15/2042 & 3 & 104.4063 & 104.4375 & -0.1797 & 2.751 \\ \hline 8/15/2042 & 2.75 & 99.7188
& 99.75 & -0.1875 & 2.764 \\ \hline 11/15/2042 & 2.75 & 99.6484 & 99.6797 & -0.125 & 2.768
\\ \hline 2/15/2043 & 3.125 & 106.4844 & 106.5156 & -0.1172 & 2.766 \\ \hline 5/15/2043 &
2.875 & 101.7344 & 101.7656 & -0.1328 & 2.778 \\ \hline 5/15/2044 & 3.375 & 111.1953 &
111.2266 & -0.2266 & 2.776 \\ \hline 11/15/2044 & 3 & 103.9375 & 103.9688 & -0.1875 &
2.79 \\ \hline 2/15/2045 & 2.5 & 94.1172 & 94.1484 & -0.1719 & 2.808 \\ \hline 5/15/2045 & 3
& 103.8438 & 103.875 & -0.1875 & 2.798 \\ \hline 8/15/2045 & 2.875 & 101.3438 & 101.375 &
-0.1719 & 2.804 \\ \hline 11/15/2045 & 3 & 103.8125 & 103.8438 & -0.1797 & 2.802 \\ \hline
5/15/2046 & 2.5 & 93.75 & 93.7813 & -0.1797 & 2.818 \\ \hline 11/15/2046 & 2.875 &
101.2188 & 101.25 & -0.1719 & 2.812 \\ \hline 5/15/2047 & 3 & 103.8125 & 103.8438 & -
0.1719 & 2.808 \\ \hline 8/15/2047 & 2.75 & 98.7422 & 98.7734 & -0.1484 & 2.811 \\ \hline
\end{tabular}.
