Consider the following three bond quotes: a Treasury bond quoted at 105:19, a co
ID: 2705764 • Letter: C
Question
Consider the following three bond quotes: a Treasury bond quoted at 105:19, a corporate bond quoted at 96.80, and a municipal bond quoted at 101.20. 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.)
Consider the following three bond quotes: a Treasury bond quoted at 105:19, a corporate bond quoted at 96.80, and a municipal bond quoted at 101.20. 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.)
Explanation / Answer
105:19, a corporate bond quoted at 96.80, and a municipal bond quoted at 101.20. 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
Treasury note = (= $1,000 105 19/32%)=1,055.94
Corporate bond = 96.8%*1000 = $9680.00
municipal bond= 101.20%*5000=$5060