If the quote for a Treasury bond is listed in the newspaper as 98:09 bid,98:13 ask,the actual price for you to purchase this bond given a $10,000 par value is _____________.

Question

Quizplus · Accepted Answer

The ask price is 98:13, which means 98 and 13/32 percent of the par value. Converting 13/32 to a decimal gives 0.40625. Therefore, the price is 98.40625% of $10,000, which equals $9,840.62.

If the Quote for a Treasury Bond Is Listed in the Newspaper