The Quoted Ask Yield on a 30-Year $1,000 Par T-Bond

question 48

Multiple Choice

The quoted ask yield on a 30-year $1,000 par T-bond with a 6.25 percent coupon and a price quote of 106-16 is ________ (use semiannual compounding) .

• A)2.94 percent
• B)2.90 percent
• C)5.79 percent
• D)5.87 percent
• E)4.95 percent

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Definitions:

Racemic Alanine

A mixture of equal parts of the D- and L-enantiomers of alanine, making it optically inactive due to the internal compensation of optical activity.

Acetaldehyde

A volatile, colorless, and flammable liquid organic compound, used as an intermediate in the synthesis of various chemicals.

3-Methylthiopropanal

An organic compound characterized by a three-carbon aldehyde functional group attached to a sulfur atom-containing methyl group.

Methionine

An essential amino acid that plays a role in many cellular processes, such as initiating protein synthesis and being a source of sulfur.