The asked quote for a Treasury Bond given in the WSJ is 120.16. This means...
80.2K
Verified Solution
Link Copied!
Question
Accounting
The asked quote for a Treasury Bond given in the WSJ is 120.16. This means that the ____ price for a 1,000 par bond is ___.
A. Clean/ $1,205.00
B. Clean/ $1,202.50
C. Full/ $1,205.00
D. Full/ $1,202.50
E. Clean/ $120.16
A Treasury bond is currently trading at par, which means that the current clean price is 1,000. As we approach the next coupon date, its clean price will ____ and its full price will ____. Assume the yield stays constant during the period up to the next coupon date.
A. Increase/ increase
B. Stay the same/ stay the same
C. Stay the same/ increase
D. Stay the same/ decrease
E. Increase/ stay the same
What is the YTM for a zero coupon bond ($1,000 par) maturing 18 months and 15 days from now selling for $900 today. Use semiannual rate approach.
A. 7.81%
B. 6.94%
C. 7.19%
D. 8.41%
E. 6.53%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
