If the price of a $10,000 par Treasury bond is $10,237.50 the quote would be listed in the newspaper as ________.

Question

Quizplus · Accepted Answer

The price of the bond is $10,237.50, which is 102.375% of the $10,000 face value. To convert this to the traditional quote format for bonds, we need to write this as a whole number plus a fraction of 32nds of a point. The whole number is 102, and the fraction can be found by multiplying the decimal portion (.375) by 32. This gives us 12, so the quote would be listed as 102:12.

If the Price of a $10,000 Par Treasury Bond Is