Use the following Treasury bond quote to answer the following questions ...
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Finance
Use the following Treasury bond quote to answer the following questions
| Maturity | Coupon Rate (%) | Bid Price | Asked Price | Asked Yield (%) |
| 8/15/2040 | 3.875 | 139.0120 | 139.0320 | 1.551 |
| Is the bond selling at discount, par, or premium? |
|
| What is the price for an investor who buys the bond? |
|
| If Emily is a dealer and owns a bond with $1,000 of par value, what is the market value of her bond? |
|
| What is the price for a dealer who buys the bond? |
|
| If David is an investor and owns a bond with $10,000 of par value, what is the market value of his bond? |
|
If Alex, who is a dealer, bought and sold bonds with $400,000 of par value, how much would the Alex earn from the spread? Explain your answer.
Explain how you know the Treasury that matures in 2040 is a bond rather than a note.
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