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A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has...

A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has a coupon rate of 11.5 percent. What is the yield value of a 32nd for this bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

           

  Yield value (in basis points)
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

GENERALLY WE WRITE YIELD IN % OR DECIMAL TERMS, HERE IT IS ASKED IN BASIS POINTS

100 BASIS POINTS = 1 %

SO FOR 9.935% = 993.50 BASIS POINTS

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