Question

Please do it by type not pics.

1.Consider the following three bond quotes: a Treasury note quoted at 97.24, a corporate bond quoted at 103.75, and a municipal bond quoted at 102.40. 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 bond =

Corporate bond =

Municipal bond =

Answer 1

Price of Treasury Bond = $972.40

Price of Corporate Bond = $1037.50

Price of Municipal Bond = $5120

Explanation;

1.

Treasury note quoted at 97.24

Par value of Treasury Note = $1000

Thus price of Treasury Note will be ($1000 * 97.24 / 100) = $972.40

2.

Corporate bond quoted at 103.75

Par value of corporate bond = $1000

Thus price of Corporate bond will be ($1000 * 103.75 / 100) = $1037.50

3.

Municipal bond quoted at 102.40

Par value of corporate bond = $5000

Thus price of Municipal bond will be ($5000 * 102.40 / 100) = $5120