Convert bond quotations from the tick format to the decimal format. See details in LN$04-$ppt#$11.$ I

also posted an old video on moodle to illustrate how the tick convention works. I also show an

example below.

Based on given information $($maturity date, coupon, asked price, etc.$),$ calculate the term to

maturity in years and the associated discount factors for terms from $0\mathrm{.}5$ year to $5$ years. Use the

"scatter plot" $()$ to plot the term structure of discount factor.

Calculate the spot rate and six$-$month forward rate for terms from $0\mathrm{.}5$ year to $5$ years. Plot the term

structure of spot and forward rates.

Example of bond quotation in ticks: $99\mathrm{.}2920$

$99$ is in decimal.

the two digits $(29)$ after the dot is the number of ticks, and each tick is $\frac{1}{32}$;

the third digit $(2)$ is the number of finer ticks, and each finer tick is $1/8$ of a tick.

The fourth digit is not used at this moment.

In decimal, it is $99+\frac{29+\frac{2}{8}}{32}=99\mathrm{.}9141.$