Use the following Treasury quote to answer parts a i. ...

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Finance

Use the following Treasury quote to answer parts a i.

Maturity

Coupon Rate (%)

Bid Price

Asked Price

Asked Yield (%)

2/15/2050

2.000

115.0200

115.0400

1.1381

a. Does the Treasury quote identify the yield to maturity? If so, what is the yield to maturity?

b. Does the Treasury quote identify the coupon rate? If so, what is the coupon rate?

c. Does the Treasury quote identify the current yield? If so, what is the current yield?

d. Is the note/bond selling at discount, par, or premium?

e. What price would an investor pay to buy the bond?

f. What would be the total cost for an investor to buy $50,000 of par value?

g. What price would a dealer pay to buy the bond?

h. What would be the total cost for a dealer to buy $50,000 of par value?

i. If a dealer bought and sold $400,000 of par value, how much would the dealer earn?

Please answer A-I

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