Question: There is an (intentional) error in the 10/01/2024 bond quotation. Compare the Coupon rate, the Asked price, and the Asked yield. What is the error?

There is an (intentional) error in the 10/01/2024 bond quotation. Compare the Coupon rate, the Asked price, and the Asked yield. What is the error?

0 t Table 9.1 Date 15-Sep 10-Nov 0 8 Transaction Prices Nasdaq 100 Adobe T-bond Index 72.61 125.0125 1962.87 125.725 2035.92

3 t 0 8 Table 9.1 Date 15-Sep 10-Nov Table 9.2 t Maturity 0 10/1/24 10/1/24 t 50 Table 9.3 15-Sep Adobe Transaction Prices Adobe T-bond 72.61 125.0125 81.69 125.725 6.75% 10/01/24 T- Stack Index Stock Coupon 6.75 6.75 Symbol ADB Nasdaq 100 Index 1962.87 2035.92 Open 73.42 T-Bond Quotations Asked Bid 124.9783 125.0125 125.725 126.1325 High 73.42 Chg -0.0078 0.0103 Low 69.98 Ask Yid 7.12 6.95 Close 72.61 Net Che -0.17 Stock Quotations %Chg -0.74 Vol 340,408 52 Week High 89.49 52 Week Low 50.20 Div Solve Yield 3.1401 O PE 16.29 YTD %Chg -10.83

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The error in the 10012024 bond quotation is that the asked price and asked yield do not match The coupon rate is 675 which means that the bond should be trading at a yield of 675 when the price is 125... View full answer

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