what is the price of these three bonds in dollars?

Question

868 viewsOctober 22, 2016

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Darshita 6.14K October 22, 2016 0 Comments

Bond Quotes Consider the following three bond quotes; a Treasury note quoted at 97:27, and a corporate bond quoted at 103.25, and a municipal bond quoted at 101.90. If the 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?

1 Answer

score 0 · Answer 1 · 2016-10-22T11:16:40+00:00

Treasury note at 97:27: (97+27/32)% × $1,000 = $978.44

Corporate bond at 103.24: 103.24% × $1,000 = $1,032.40

Municipal bond at 101.90: 101.90% × $5,000 = $5,095.00

1 Answer

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