A Treasury bond is quoted at a price of 105:21. What is the market price of this bond if the face value is $1,000?

Question

Quizplus · Accepted Answer

The market price of the bond is calculated by taking the quoted price and converting it into a dollar amount based on the face value of the bond. The quoted price of 105:21 means 105 and 21/32 percent of the face value. To convert this to a dollar amount: 105 + (21/32) = 105.65625% of $1,000 = $1,056.56.

A Treasury Bond Is Quoted at a Price of 105:21