Locate the Treasury bond in Figure 6.3 maturing in February 2027. Is this a premium or a
Question:
Locate the Treasury bond in Figure 6.3 maturing in February 2027. 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?
Figure 6.3
Transcribed Image Text:
Asked Maturity Coupon Bid Asked Chg Yield unch. 2009 May 15 5.500 101:01 101:02 0.0832 2009 May 31 4.875 101:03 101:03 0.2224 -1 101:08 2010 Feb 28 2.000 101:09 +2 0.7062 1.750 101:16 +8 2011 Nov 15 101:14 1.1883 2012 Nov 15 4.000 109:14 109:16 +19 1.3581 2013 Dec 31 1.500 98:29 98:30 +25 1.7322 2014 Nov 15 4.250 112:12 112:15 1.9294 +22 2015 Feb 15 11.250 148:31 +28 2.3683 149:00 4.875 115:21 115:22 +39 2016 Aug 15 2.5487 111:26 2017 Nov 15 4.250 111:24 +54 2.7168 105:27 2018 Feb 15 3.500 105:29 +52 2.7507 +53 2.7614 2018 May 15 2019 Aug 15 3.875 108:30 109:00 8.125 141:10 141:11 +62 3.3932 2020 Feb 15 8.500 +64 145:12 145:15 3.4730 2022 Aug 15 7.250 137:20 137:23 +90 3.6719 2023 Aug 15 6.250 128:19 128:21 +106 3.6755 147:25 2024 Nov 15 7.500 147:22 +118 3.5137 2025 Feb 15 7.625 149:19 149:21 +119 3.5270 2026 Nov 15 6.500 135:30 136:00 +110 3.7070 137:25 137:27 3.7165 2027 Feb 15 6.625 +115 2028 Aug 15 5.500 123:30 124:00 +110 3.7504 3.7577 2029 Feb 15 5.250 120:24 120:26 +105 2029 Aug 15 2030 May 15 6.125 133:27 133:29 +114 3.7382 6.250 136:13 136:16 3.7411 +112 2031 Feb 15 5.375 124:00 124:02 +106 3.7555 4.500 3.6316 2036 Feb 15 114:25 114:27 +116 119:25 +120 2037 Feb 15 4.750 119:23 3.6190 2037 May 15 5.000 124:15 124:18 +120 3.6056 2038 Feb 15 4.375 114:11 114:14 +116 3.5715 117:21 2038 May 15 4.500 117:23 +118 3.5240 2039 Feb 15 3.500 99:24 99:26 +109 3.5101
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
This is a premium bond because it sells for more than 100 of face value The current yield ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Related Video
The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel
Students also viewed these Business questions
-
Bond J is a 4 percent coupon bond. Bond S is a 14 percent coupon bond. Both bonds have eight years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise...
-
Bond P is a premium bond with an 8 percent coupon. Bond D is a 4 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 6 percent, and have five years to...
-
E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a...
-
Given the sprinkler system layout in Figure A, calculate the flow and pressure required at point RN#1 (point B in Figure B) without considering the impact of velocity pressures. Note that RN#1 (point...
-
Explain why a price-setting firm will always set its revenue-maximizing price below the price that would maximize its profit.
-
Student researchers wanted to see whether listening to music with lyrics would affect a persons ability to memorize words compared to listening to music without lyrics. They recruited 31 people for...
-
Heritage, a general contractor, had filed a breach of contract action against an electrical subcontracting firm that had withdrawn its bid right before the contract was to be performed. A jury had...
-
Presented below are two independent situations. Situation 1 Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18,...
-
Consider the arithmetic series 7+13+19+25+31+37+43 +...and answer thequestions which follow. a) (i) T. (ii) Express Tin terms of S (2) (2) b) (i) T =........... ... S =... (2) (ii) Express T2 in...
-
Coffee Blending and Sales Hill-O-Beans Coffee Company blends four component beans into three final blends of coffee: one is sold to luxury hotels, another to restaurants, and the third to...
-
Locate the Treasury issue in Figure 6.3 maturing in August 2023. What is its coupon rate? What is its bid price? What was the previous day's asked price? Figure 6.3 Asked Maturity Coupon Bid Asked...
-
Software has 7.5 percent coupon bonds on the market with 22 years to maturity. The bonds make semiannual payments and currently sell for 108 percent of par. What is the current yield on PKs bonds?...
-
Find the numerical measures of the angles of the triangle whose angle measures are given in Problems 3944. x, 3x 10, 3(55 - x)
-
Find the amount of work and heat exchanged for two moles of ideal monatomic gas undergoing the process shown in the figure. P, kPa 120 80.0 10.0 16.0 V, L
-
1. Why am I taking this course? 2. What were my thoughts on reading the units? 3. What did I learn? 4. How may I apply what I have read to the work place? 5. Finish this statement I am still confused...
-
Finn does side work as a chef. For his most recent event, he spent six hours cooking and prepping at $50/hour. His clients provided all the raw foods and materials shown below from a list he sent...
-
Explain why non-integrated sales and marketing information systems lead to enterprise-wide inefficiencies, higher costs, lost profits, and customer dissatisfaction?
-
TechCity is a small consumer electronics retailer. The company reported $120,000,000 in revenues for 2010 and $90,000,000 in Cost of Goods Sold (COGS). In the same year, Techcity held an average of...
-
You have been presented with the following selected information taken from the financial statements of solvency. Magna International Inc. (in U.S. millions): Instructions (a) Calculate each of the...
-
If a process has a six-sigma capability, what is the process capability index? a. 1 b. 2 c. 6 d. 12
-
Float an unfortunately common practice goes like this, suppose you are out of money in your checking account; however, your local grocery store will, as convenience to you as a customer, cash a check...
-
Lockboxes and Collection it takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutters management is considering a lockbox system to reduce...
-
Changes in Target Cash Balances indicate the likely impact of each of the following on a companys target cash balance. Use the letter I to denote an increase and D to denote a decrease. Briefly...
-
Write the Decomposition for this problem. Also include a listing of inputs and outputs. Finally, list the condition of when the loop will end and how you will determine what prints out to the user....
-
Insurance business operations are in two components, i.e. technical business and non-technical business. Briefly explain these two components and define the technical risk to which the insurance...
-
1 3 If f(x) = - 4x + 12x - 5 and the domain is the set of all x such that 0 x 9, then the absolute maximum value of the function f occurs when x is
Study smarter with the SolutionInn App