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Calculate a bonds yield-to-maturity the ask price

Assignment:

a. Suppose you calculate a bond's yield-to-maturity using the ask price, then you repeat the calculation using the bond's bid price. Which yield-to-maturity will be higher?

b. You look up the price of a certain Treasury note and find that it is quoted as 98:10. What is the dollar price of this note if its par value is $1,000?

c. Explain why the yield spread on corporate bonds versus Treasury bonds must always be positive. Is the same true for the yield spread on municipal bonds?

d. Explain why the height of the yield curve depends on inflation.

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Corporate Finance: Calculate a bonds yield-to-maturity the ask price

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Corporate Finance: Calculate a bonds yield-to-maturity the ask price

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