Given that the stop-out yield on a newly auctioned 20-year Treasury bond is 3.21%, calculate the...
Given that the stop-out yield on a newly auctioned 20-year Treasury bond is 3.21%, calculate the price that every successful bidder paid for a $1,000 par value of this bond.
Homework Answers
Price of Bond= 1,000/(1.0321)^20
Price of Bond = $531.57
So,
Price of Bond = $531.57
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Given that the stop-out yield on a newly auctioned 20-year
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Suppose that the stop-out yield in a 20-year Treasury bond auction is 3.35%. What is the (approximate) price that a bidder will pay for a $1,000 par value bond?
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