Question
The Treasury bond face value is $5,000. Today's date: 2021, Feb.15 Maturity Coupon Bid Asked Chg Yld to Maturity 2025 Feb 15 10.500 108:29 109:05
The Treasury bond face value is $5,000.
| Today's date: 2021, Feb.15 | |||||
| Maturity | Coupon | Bid | Asked | Chg | Yld to Maturity |
| 2025 Feb 15 | 10.500 | 108:29 | 109:05 | -0.547 | 12.34 |
What is the price to purchase this treasury bond?
Answer
-
Purchase price:
= $5,000(109+5/32)%
= $5,000109.15625%
= $5,457.81
The bond price is $5,457.82
Can someone please explain where 109 + 5/32 came from?
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Inside Company Valuation
Authors: Angelo Corelli
1st Edition
3319537822, 9783319537825
