Refer to the T-note and T-bond quotes in Table 6-1 a. What is the asking price...

Refer to the T-note and T-bond quotes in Table 6-1

a. What is the asking price on the 2.750 percent November 2023 T-bond if the face value of the bond if the face value bond is $10,000 ?

b. What is the bid price on the 0.500 percent August 2016 T-note if the face value of the bond is $10,000

(For all requirements, round your answer to 2 decimal places. (e.g., 32.16))

a. The Ask price ______

b. The Bid price ______

Maturity. Coupon Bid. Asked Chg. Asked Yield

11/15/2023 2.750 107.5234 107.5391 0.0703 1.673

8/31/2016 0.500 100.0391 100.0547 0.0234 0.296

Solutions

Expert Solution

The bid ans ask prices are quoted using par value = 100

a : The Ask price = 10000 x 107.5391% = 10753.91

b : The Bid price = 10000 x 100.0391% = 10003.91

Answer : 10753.91, 10003.91 [Thumbs up please]

jeff jeffy answered 2 years ago

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