Determine the actual prices a dealer would pay (bid) or sell (ask) on the following bonds: a.
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Determine the actual prices a dealer would pay (bid) or sell (ask) on the following bonds:
a. A Treasury bond with $1,000 face value quoted by a dealer at a bid price of 95-4 per $100 face value and fractions in 32nds.
b. A Treasury bond with $1,000 face value quoted by a dealer at an asked price of 110-4+ per $100 face value with 4+ indicating fractions in 64ths.
c. A corporate bond with $1,000 face value quoted by a dealer at a bid price of 97 1/2 per $100 face value with fractions in 100ths.
d. A zero-coupon bond with maturity of one year quoted at an asked price to yield 550 basis points.
e. A T-bill maturing in 52 days and paying $10, 000 face value and quoted by a dealer at an asked annual discount yield of 4%.
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