Refer to the T-note and T-bond quotes in Table 61 . ( LG 6-2 )

a-What is the asking price on the 4.375 percent November 2039 T-bond if the face value of the bond is $10,000? b-What is the bid price on the 5.000 percent August 2011 T-note if the face value of the bond is $10,000?

TABLE 6-2 Present Value of STRIP Components of a 5-Year T-Note with an 8 Percent Coupon Rate and 7.90 Percent Yield to Maturity Maturity on Security Cash Flow Present Value of Cash (in years) Received at Maturity Flow at 7.90 Percent 0.5 $ 400 $ 384.80 1.0 400 370.18 1.5 400 356.11 2.0 400 342.58 2.5 400 329.56 3.0 400 317.04 3.5 400 304.99 4.0 400 293.40 4.5 400 282.25 5.0 400 271.53 5.0 10,000 6,788.21 Total $10,040.65 TABLE 6-2 Present Value of STRIP Components of a 5-Year T-Note with an 8 Percent Coupon Rate and 7.90 Percent Yield to Maturity Maturity on Security Cash Flow Present Value of Cash (in years) Received at Maturity Flow at 7.90 Percent 0.5 $ 400 $ 384.80 1.0 400 370.18 1.5 400 356.11 2.0 400 342.58 2.5 400 329.56 3.0 400 317.04 3.5 400 304.99 4.0 400 293.40 4.5 400 282.25 5.0 400 271.53 5.0 10,000 6,788.21 Total $10,040.65