Question: Please answer 15&16 Questions 15 & 16 Caleb opens The Wall Street Journal and finds that the 30-year Treasury bond has a yield-to-maturity of 7.5%.
Please answer 15&16
Questions 15 & 16 Caleb opens The Wall Street Journal and finds that the 30-year Treasury bond has a yield-to-maturity of 7.5%. He tells Vincent that this is an example of a nominal interest rate. After that he was reading the U.S. Treasury Bond Quotations table below and calculated the previous day's asked price and the current yield to be $979.35 and 4.084%, respectively. Bid Asked Asked Maturity Mo/Yr Rate Price Price Change Yield 4 June 09 n 97:29 97:30 -1 4.92 Caleb's calculation on the U.S. Treasury Bond Quotations table is most likely correct with respect to: O A. Current yield O B. Test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations O C. Previous day's asked price. QUESTION 16 Is Caleb correct with respect to his comment on the 30-year Treasury bond that has yield-to-maturity of 7.5%? A. No, this is an example of an inflation rate. O B. No, this is an example of a real interest rate. O C. Yes
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