Question

Consider the following three bond quotes; a Treasury note quoted at 102:26, and a corporate bond quoted at 99.25, and a municipal bond quoted at 102.65. 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?

Answer #1

**The Price of the Bonds are calculated
by multiplying the Par Value of the Bond with the Quoted Percentage
of the Bond**

**Price of the Treasury
Note**

Price of the Treasury Note = Par Value x Quoted Percentage of the Bond

= $1,000 x [102% + (26/32)%]

= $1,000 x (102% + 0.813%)

= $1,000 x 102.813%

= $1,028.13

**Price of the Corporate
Bond**

Price of the Corporate Bond = Par Value x Quoted Percentage of the Bond

= $1,000 x 99.25%

= $992.50

**Price of the Municipal
Bond**

Price of the Municipal Bond = Par Value x Quoted Percentage of the Bond

= $5,000 x 102.65%

= $5,132.50

**Hence, the final answers
are;**

Price of the Treasury Note = $1,028.13

Price of the Corporate Bond = $992.50

Price of the Municipal Bond = $5,132.50

Please do it by type not pics.
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