Problem $8-15$ Using Treasury Quotes

Locate the Treasury bond in Figure $8\mathrm{.}5$ maturing in November $2039.$ Assume a par value

of $$10,000.$

Is this a premium or a discount bond?

Discount bond

Premium bond

a$.$ What is its current yield? $($Do not round intermediate calculations and enter your

answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is its yield to maturity? $($Do not round intermediate calculations and enter your

answer as a percent rounded to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$

c$.$ What is the bid$-$ask spread in dollars? $($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$ Maturity Coupon Bid Asked Change Asked Yield

$7/15/20212\mathrm{.}625102\mathrm{.}062102\mathrm{.}066-0\mathrm{.}0020\mathrm{.}134$

$2/28/20221\mathrm{.}125101\mathrm{.}146101\mathrm{.}152-0\mathrm{.}0040\mathrm{.}15$

$1/15/20231\mathrm{.}5103\mathrm{.}056103\mathrm{.}062-0\mathrm{.}0160\mathrm{.}159$

$8/15/20242\mathrm{.}375108\mathrm{.}162108\mathrm{.}166-0\mathrm{.}0220\mathrm{.}219$

$9/30/20253113\mathrm{.}214113\mathrm{.}22-0\mathrm{.}0420\mathrm{.}293$

$7/31/20261\mathrm{.}875108\mathrm{.}262108\mathrm{.}266-0\mathrm{.}030\mathrm{.}368$

$1/31/20271\mathrm{.}5106\mathrm{.}282106\mathrm{.}286-0\mathrm{.}0020\mathrm{.}412$

$8/15/20282\mathrm{.}875118\mathrm{.}116118\mathrm{.}126-0\mathrm{.}030\mathrm{.}517$

$2/15/20295\mathrm{.}25139\mathrm{.}054139\mathrm{.}064-0\mathrm{.}030\mathrm{.}515$

$5/15/20300\mathrm{.}62599\mathrm{.}316100\mathrm{.}006-0\mathrm{.}720\mathrm{.}623$

$8/15/20300\mathrm{.}62599\mathrm{.}24699\mathrm{.}256-0\mathrm{.}0460\mathrm{.}645$

$2/15/20315\mathrm{.}375148\mathrm{.}094148\mathrm{.}104-0\mathrm{.}0860\mathrm{.}606$

$2/15/20364\mathrm{.}5153\mathrm{.}074153\mathrm{.}094-0\mathrm{.}0620\mathrm{.}824$

$5/15/20384\mathrm{.}5158\mathrm{.}102158\mathrm{.}122-0\mathrm{.}0820\mathrm{.}922$

$11/15/20394\mathrm{.}375158\mathrm{.}036158\mathrm{.}056-0\mathrm{.}0681\mathrm{.}031$

$8/15/20401\mathrm{.}12599\mathrm{.}26699\mathrm{.}286-0\mathrm{.}0161\mathrm{.}131$

$11/15/20413\mathrm{.}125137\mathrm{.}004137\mathrm{.}024-0\mathrm{.}0321\mathrm{.}151$

$8/15/20422\mathrm{.}75129\mathrm{.}304130\mathrm{.}004-0\mathrm{.}7181\mathrm{.}193$

$5/15/20432\mathrm{.}875132\mathrm{.}136132\mathrm{.}156-0\mathrm{.}011\mathrm{.}231$

$5/15/20443\mathrm{.}375143\mathrm{.}092143\mathrm{.}112-0\mathrm{.}0081\mathrm{.}256$

$8/15/20452\mathrm{.}875133\mathrm{.}186133\mathrm{.}206-0\mathrm{.}0061\mathrm{.}294$

$11/15/20462\mathrm{.}875134\mathrm{.}234134\mathrm{.}2540\mathrm{.}021\mathrm{.}304$

$2/15/20473137\mathrm{.}286137\mathrm{.}3060\mathrm{.}0161\mathrm{.}301$

$5/15/20492\mathrm{.}875136\mathrm{.}314137\mathrm{.}0140\mathrm{.}0181\mathrm{.}321$

$8/15/20501\mathrm{.}375100\mathrm{.}202100\mathrm{.}2220\mathrm{.}021\mathrm{.}347$