The following is a solution on chegg. I would like to know how and why the number 32 was used for the calculation of the treasury note.

Bond Quotes Consider the following three bond quotes: a Treasury note quoted at 97:27, a corporate bond quoted at 103.25, and a municipal bond quoted at 101.90. lfthe Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? (LG73) Step-by-step solution Step 1 of 1 A. Treasury note at 97:27: (97 +27/32)% x $1,000 0.9784375 x $1,000 $978.44 Corporate bond at 103.25: 103.25% x $1,000 1.0325 x $1,000 $1,032.50 Municipal bond at 101.90: 101.90% x $5,000 1.019 x $5,000 $5,095.00