Question: We have a bond from Ford. with the following features The current Treasury yields are: MATURITY %YIELD 1MONTH

We have a bond from Ford. with the following features The current Treasury yields are:

MATURITY % YIELD

1 MONTH 3.03

3 MONTH 3.34

6 MONTH 3.45

1 YEAR 4.09

2 YEAR 4.30

3 YEAR 4.33

5 YEAR 4.14

10 YEAR 3.89

30 YEAR 3.86

1) What is the price of a Treasury bond with all the same characteristics otherwise?

2) What is the credit spread of the Ford bond?

3) What is the accrued interest of the most recent trade? What is the “dirty” price?

4) Assume the bond is called on the next call date. What is the yield to call?

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