Question

Treasury bond maturing in February 2037, assuming par value of $5000 Coupon: 4.75 Bid: 135.2266 Asked:...

Treasury bond maturing in February 2037, assuming par value of $5000

Coupon: 4.75

Bid: 135.2266

Asked: 135.2891

Chg: 0.6641

Asked Yield: 2.638

What is its bid price in dollars? What was the previous day’s asked price in dollars?

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Answer #1

Bid price = 135.2266 = 135.2266%
Bid price = (135.2266 / 100)($5,000)
Bid price = $6,761.33

The previous day's asked price is found by:

Previous day's asked price = Today's asked price - Change
Previous day's asked price = 135.2891 - (0.6641)
Previous day's asked price = 134.625

The previous day's price in dollars was:

Previous day's dollar price = 134.625 = 134.625%
Previous day's dollar price = (134.625 / 100)($5,000)
Previous day's dollar price = $6,731.25

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