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Please show the work for the following problems. 1)a treasury bond with a 1000 par is quoted at a bid of 110.12 and an ask
Please show the work for the following problems.
1)a treasury bond with a 1000 par is quoted at a bid of 110.12 and an ask of 110.15.
a) $1,103.75
b) $1,104.69
c) $1,101.20
D) $1,101.50
E) None of the above
2) What is the quoted ask yield on a 12 year $1000 par treasury bond with a 5% coupon and a price quote of 106.22 is (use semiannual coumpounding) ?
a) 5.00%
b) 4.32%
c) 4.36%
d) 2.16%
e) 2.18%
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