Return to question Consider the following three bond quotes: a Treasury note quo

Question

Return to question Consider the following three bond quotes: a Treasury note quoted at 98.25, a corporate bond quoted at 103.20 and a municipal bond quoted at 101.85. 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? (Do not round intermediate calculations and round your final answers to 2 decimal places.) 2 points Answer is complete but not entirely correct 02:16:58 Treasury bond Corporate bond Municipal bond 982.50 1,032.00 ,092.50

Explanation / Answer

price of treasury bond wiil be = (98 + 25 /32) % *$1000................(since the quote is 98 .25 and face value $1000)

=> (98 +0.78125)%*$1000

=>$987.81.(rounded to two decimals).

price of treasury bond = $987.81

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