The following is the Treasury bond quote as of March 25th, 2020. Assume the face (par)...

The following is the Treasury bond quote as of March 25th, 2020. Assume the face (par) value of the Treasury bond is $100,000 and the bond pays interest semiannually.

Coupon Maturity Ask

Rate Date Bid Asked Chg Yld (YTM)

2.8% March 25^th, 2033 ? ? - .112 2.65%

Is this a premium bond or a discount bond? What is the asked price of the Treasury bond in dollars? What is the asked price as a % of the par value? What is its effective YTM? What is its current yield? What was the previous day’s asked price (in dollars) for this bond? If you expect the YTM to remain unchanged, what is the expected price of the bond next year (i.e., March 25th, 2021)? If the bid-ask spread for this bond is .033, what is the bid price of this bond in dollars?

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jeff jeffy answered 1 year ago

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