Drop-sown options:

1) US Treasury or agency / corporate or municipal

2) 103:12 / 103 / 103:37.5

3) 103.38/8,103/8,270/830,200

4)discount/premium

5) up / down

6) 5.63% / 5.80% / 6% / 6.38%

3 co Suppose your friend tells you that she recently purchased a 20-year $8,000.00 bond with a 6% coupon. A month later, she saw it quoted at 103.375, but she does not know what this means. You can tell by the way the bond is priced that she has a corporate or municipal bond; otherwise it would have been priced 103:12 You explain that the market price of her bond is now $8,103 meaning it is now a discount bond. up since the bond was issued. The Based on the market price of the bond you calculated, you can tell that market interest rates have gone current yield of the bond is now