Problem $6-14$ Using Treasury Quotes $[$LO $2]$

Locate the Treasury bond in Figure $6\mathrm{.}4$ maturing in November $2045.$ Assume a $$1,000$ par value.

a$.$ Is this a premium or discount bond?

b$.$ What is its current yield?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What is its yield to maturity?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $3$ decimal places, e$.$g$.,32\mathrm{.}161.$

d$.$ What is the bid$-$ask spread in dollars?

Note: Do not round intermediate calculations and round your answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.$

$\backslash$table$[[$a$.$ Premium$/$Discount$,,],[$b$.$ Current yield,,$\%$

U$.$S$.$ Treasury Quotes

Treasury note and bond data are representative over$-$the$-$counter quotations as of $3$ p$.$m$.$ Eastern time.

Figure $6\mathrm{.}4$ Sample Wall Street Journal U$.$S$.$ Treasury note and bond prices

$\backslash$table$[[$Maturity$,$Coupon,Bid,Asked,Change,Asked Yield$],[\frac{8}{15}\frac{?}{2021},2\mathrm{.}125,101\mathrm{.}040,101\mathrm{.}044,-0\mathrm{.}006,0\mathrm{.}077],[\frac{2}{28}\frac{?}{2022},1\mathrm{.}125,101\mathrm{.}036,101\mathrm{.}042,-0\mathrm{.}006,0\mathrm{.}089],[\frac{3}{31}\frac{?}{2023},1\mathrm{.}500,102\mathrm{.}310,102\mathrm{.}314,-0\mathrm{.}004,0\mathrm{.}128],[\frac{4}{30}\frac{?}{2025},0\mathrm{.}375,100\mathrm{.}042,100\mathrm{.}046,0\mathrm{.}012,0\mathrm{.}340],[\frac{12}{31}\frac{?}{2026},1\mathrm{.}750,106\mathrm{.}256,106\mathrm{.}262,0\mathrm{.}024,0\mathrm{.}579],[\frac{11}{15}\frac{?}{2027},6\mathrm{.}125,136\mathrm{.}020,136\mathrm{.}024,0\mathrm{.}710,0\mathrm{.}688],[\frac{11}{15}\frac{?}{2028},3\mathrm{.}125,117\mathrm{.}020,117\mathrm{.}030,0\mathrm{.}708,0\mathrm{.}856],[\frac{8}{15}\frac{?}{2029},6\mathrm{.}125,143\mathrm{.}034,143\mathrm{.}044,0\mathrm{.}720,0\mathrm{.}880],[\frac{5}{15}\frac{?}{2030},6\mathrm{.}250,147\mathrm{.}014,147\mathrm{.}024,0\mathrm{.}728,0\mathrm{.}951],[\frac{2}{15}\frac{?}{2031},5\mathrm{.}375,141\mathrm{.}126,141\mathrm{.}136,0\mathrm{.}026,1\mathrm{.}028],[\frac{2}{15}\frac{?}{2037},4\mathrm{.}750,148\mathrm{.}126,148\mathrm{.}136,0\mathrm{.}090,1\mathrm{.}378],[\frac{5}{15}\frac{?}{2038},4\mathrm{.}500,146\mathrm{.}230,146\mathrm{.}250,0\mathrm{.}098,1\mathrm{.}437],[\frac{5}{15}\frac{?}{2039},4\mathrm{.}250,144\mathrm{.}006,144\mathrm{.}026,0\mathrm{.}780,1\mathrm{.}489],[\frac{2}{15}\frac{?}{2040},4\mathrm{.}625,151\mathrm{.}024,151\mathrm{.}044,0\mathrm{.}808,1\mathrm{.}523],[\frac{2}{15}\frac{?}{2041},4\mathrm{.}750,154\mathrm{.}232,154\mathrm{.}252,0\mathrm{.}126,1\mathrm{.}559],[\frac{2}{15}\frac{?}{2043},3\mathrm{.}125,126\mathrm{.}162,126\mathrm{.}182,0\mathrm{.}112,1\mathrm{.}679],[\frac{8}{15}\frac{?}{2044},3\mathrm{.}125,126\mathrm{.}312,127\mathrm{.}012,0\mathrm{.}120,1\mathrm{.}724],[\frac{11}{15}\frac{?}{2045},3\mathrm{.}000,125\mathrm{.}006,125\mathrm{.}026,0\mathrm{.}784,1\mathrm{.}749],[\frac{5}{15}\frac{?}{2046},2\mathrm{.}500,114\mathrm{.}194,114\mathrm{.}214,0\mathrm{.}098,1\mathrm{.}777],[\frac{5}{15}\frac{?}{2047},3\mathrm{.}000,125\mathrm{.}200,125\mathrm{.}220,0\mathrm{.}100,1\mathrm{.}774],[\frac{8}{15}\frac{?}{2048},3\mathrm{.}000,126\mathrm{.}014,126\mathrm{.}034,0\mathrm{.}780,1\mathrm{.}795],[\frac{11}{15}\frac{?}{2049},2\mathrm{.}375,112\mathrm{.}090,112\mathrm{.}110,0\mathrm{.}778,1\mathrm{.}822],[\frac{11}{15}\frac{?}{2050},1\mathrm{.}625,94\mathrm{.}242,94\mathrm{.}262,0\mathrm{.}090,1\mathrm{.}852]]$

Source:

www$.$wsj$.$com, January $22,2021.$