Question

Locate the Treasury issue in Figure 7.4 maturing in February 2029. Assume a par value of $10,000. a. What is its coupon rate? (Enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is its bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What was the previous day's asked price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. % Coupon rate b. Bid price c. Previous day's price

Answer 1

a. COUPON RATE

The coupon Rate of the Bond as on Febraury 2029 as per table is 5.250%

b. BID PRICE

Bid Price = Bid Quote * Face Value

=128.7578%* $10,000

=$12,875.78

c. The Previous Day's asked price

The Previous Day's asked price= Face Value * (Today's Asked Price - Change in Previous Day Asked Price)

=$10,000 * (128.8203%-0.4609%)

=$10,000 * (128.3594%)

=$12,835.94

NOTE= All Values have been taken from given table and for the year 2/15/2029 respectively.

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