Treasury Bond Quote by using 32nd to determine the bid and asked price. 

 

The bond maturity 2025, July 30,

Bid price : 130.35

Asked Price : 130. 30

 

What is the bid and asked quoting price and provide the interpretation.

 

Question 2: Calculate the YTM on STRIPS

 

Suppose the principle STRIPS maturity in July 2025. the asked price at the closed on July 2026 (or present value) is 98.276%

 

When STRIPS matures on July 15, 2026 (in 0.96521 year , (95.521%). the STRIPS holder will receive 100% of the face value (or future value).

 

Using semiannual compounding, calculate he yield to maturity (YTM) and provide the brief interpretation.

 

Question 3 : Accrued Interest (calculate the clear and dirty price)

 

Investor buy a 5% coupon with $1000 face value T-bond 45 days after the last coupon payment. Settlement occurs in five days. It has 135 days remaining until the next coupon payment. The bond's clean price quote is 130:25. What is the clear and dirty price.