Locate the Treasury bond in Figure 8.5 maturing in July 2026. What is its coupon rate? What is its bid price? What was the previous day’s asked price?

The bond’s coupon rate is 1.875, or 1.875 percent of face value. The bid price is 108.262, or 108.262 percent of face value. The ask price is 108.266, which is down by .03 percent from the previous day. This means that the ask price on the previous day was equal to 108.266 + .03 = 108.296.

Figure 8.5

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Maturity Coupon 7/15/2021 2/28/2022 1/15/2023 8/15/2024 9/30/2025 7/31/2026 1/31/2027 8/15/2028 2/15/2029 5/15/2030 8/15/2030 2/15/2031 2/15/2036 5/15/2038 11/15/2039 8/15/2040 11/15/2041 8/15/2042 5/15/2043 Asked Chg 102.066 -0.002 101.146 103.056 Bid 2.625 102.062 1.125 101.152 -0.004 1.5 103.062 -0.016 2.375 108.162 108.166 -0.022 3 113.214 113.22 -0.042 1.875 108.262 108.266 -0.03 1.5 106.282 106.286 -0.002 2.875 118.116 118.126 -0.03 5.25 139.054 139.064 -0.03 0.625 99.316 100.006 -0.72 0.625 99.246 99.256 -0.046 5.375 148.094 148.104 -0.086 4.5 153.074 153.094 -0.062 4.5 158.102 158.122 -0.082 4.375 158.036 158.056 -0.068 1.125 99.266 99.286 -0.016 3.125 137.004 137.024 -0.032 2.75 129.304 130.004 -0.718 2.875 132.136 132.156 -0.01 Asked Yld 0.134 0.15 0.159 0.219 0.293 0.368 0.412 0.517 0.515 0.623 0.645 0.606 0.824 0.922 1.031 1.131 1.151 1.193 1.231