Disclaimer : Here's the missing part of the question
The yield to maturity of these bonds is nothing%. (Round your response to two decimal places.)
Is this a typical situation?
The answer is 2% or 0.02
No. In normal times banks will not choose to pay more than the face value of a discount bond, since that implies negative yields to maturity
Calculation of the required bonds percentage
5000 = 5001/(1+i)
1+i = 5001/5000 = 1.0002
i = 1.0002-1 = 0.0002
i = r/100 = 0.0002
r = 0.002 or 2%
Treasury bonds (sometimes known as T-bonds) are fixed-rate debt instruments issued by the US government, with maturities ranging from 10 to 30 years.
T-bonds offer semi-annual interest payments up until maturity, when the owner is given the bond's face value.
Treasury bonds are one of four practically risk-free government-issued securities, along with Treasury bills, Treasury notes, and Treasury Inflation-Protected Securities (TIPS).
Learn more about Treasury bonds here
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