Treasury prices and yields are quoted in newspapers and online. To get practice
ID: 2618934 • Letter: T
Question
Treasury prices and yields are quoted in newspapers and online. To get practice reading and understanding these quotes, locate the Treasury issue in Figure 7.4 maturing in February 2040. Assume a par value of $10,000 and answer the following questions.
What is its coupon rate? (Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.)
Coupon rate %
What is the quoted price (in dollars) that you would receive for selling this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Bid price $
What was the previous day’s quoted price (in dollars) to purchase the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Treasury Notes and Bonds Maturity 8/31/2017 5/15/2018 2/28/2019 Bid 102.8828 110.3125 98.6953 95.7734 140.1328 Chg 0.1563 -0.3125 -0.3516 Coupon Yield 8/15/2021 11/15/2022 8/15/2023 2/15/2024 2/15/2026 8/15/2026 2/15/2027 8/15/2027 8/15/2028 11/15/2028 2/15/2029 8/15/2029 5/15/2030 2/15/2031 2/15/2036 2/15/2037 2/15/2038 2/15/2039 8/15/2039 2/15/2040 2/15/2041 8/15/2041 2/15/2042 5/15/2042 2/15/2043 2/15/2044 102.9141 110.3750 98.7109 95.8203 140.1797 92.2031 98.1328 99.6719 130.3594 138.8281 138.0000 135.7656 126.3672 123.4609 123.4375 134.5938 136.9141 125.9766 114.8359 118.8594 112.6797 97.8203 -0.5234 0.4453 -0.4844 0.6875 -0.7266 98.0703 2.750 130.2813 138.7500 137.9219 135.6875 126.2891 123.3828 123.3594 134.5156 136.8359 125.8984 114.7578 118.7813 112.6016 97.7422 114.7656 289 -0.7266 -0.7266 4.750 -0.7031 -0.5938 0.6875 -0.7344 116.9922 4.750 119.2969 101.3047 89.8516 87.4688 89.2969 98.2031 101.3828 89.8672 87.4844 89.3594 98.2656 -0.5938 -0.6016 -0.6797Explanation / Answer
Coupon rate = 4.625%
Bid price = 11,696.09
yesterdays price = (11,696.09 - 68.75) = 11,627.34
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