Question
A 180-day T-note has a face value of $10,000. The dealer's bid yield is 6% and ask yield is 5%. Questions. a. Calculate the price
A 180-day T-note has a face value of $10,000. The dealer's bid yield is 6% and ask yield is 5%.
Questions.
a. Calculate the price of this T-note assuming you buy it from the dealer at issue date.
b. Calculate your yield assuming you buy the T-note at a negotiated down price of $9725.50.
c. what is the relation between T-note price and its yield?
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
