Locate the Treasury bond in Figure 7.4 maturing in February 2040. 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? Assume a par value of $10,000.

Figure 7.4

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Treasury Notes and Bonds Maturity Coupon Bid Asked Chg Asked Yield 1.250 0.0391 1.160 11/15/2018 100.1484 100.1641 0.875 4/15/2019 99.0703 99.0859 0.0625 1.286 4/30/2020 1.125 98.5938 98.6094 0.1016 1.558 8/15/2021 8.125 127.4844 127.5000 0.2344 1.857 7/31/2022 2.000 99.9609 99.9766 0.2266 2.004 2/28/2023 1.500 96.5703 96.5859 0.2500 2.096 2.210 5/15/2024 2.500 101.9375 101.9531 0.3125 8/15/2025 6.875 135.8438 135.8594 0.3438 2.262 8/15/2026 1.500 92.4766 92.4922 0.2969 2.380 8/15/2027 6.375 136.8281 136.8438 0.4688 2.414 8/15/2028 5.500 130.2891 130.3516 0.4531 2.473 11/15/2028 5.250 128.1563 128.2188 0.4453 2.485 2/15/2029 5.250 128.7578 128.8203 0.4609 2.478 8/15/2029 6.125 139.1875 0.5391 2.478 139.2500 5/15/2030 6.250 142.5781 142.6406 0.5938 2.478 2/15/2031 5.375 134.4063 134.3438 0.5625 2.470 2/15/2036 4.500 128.0781 128.1406 0.7031 2.618 2/15/2037 4.750 131.7891 131.8516 0.7500 2.688 5/15/2037 5.000 135.9531 136.0156 0.7656 2.690 5/15/2038 4.500 128.0625 128.1250 0.6875 2.749 2.824 2/15/2039 3.500 110.9844 111.0469 0.6406 4.500 127.4922 8/15/2039 127.5547 0.7344 2.839 129.7188 2/15/2040 4.625 129.7813 0.6953 2.855 11/15/2040 4.250 123.3438 123.4063 0.7422 2.885 2/15/2041 4.750 132.4688 132.5000 0.7578 2.872 2/15/2042 3.125 103.3516 103.3828 0.6484 2.934 2/15/2043 3.125 103.1406 103.1719 0.6250 2.950 98.3906 2.963 5/15/2043 2.875 98.3594 0.5625 112.7266 112.7578 2/15/2044 3.625 0.6484 2.939 90.7578 0.6016 2/15/2045 2.500 90.7891 2.987 11/15/2046 2.875 98.1172 98.1484 0.6719 2.969