A Treasury bond is quoted at a price of 106: 13.What is the market price of this bond if the face value is $1,000?

Name: A Treasury bond is quoted at a price of 106: 13.What is the market price of this bond if the face value is $1,000?
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Question

Quizplus · Accepted Answer

The bond is quoted at a price of 106:13, which means 106 and 13/32 of face value ($1,000). So, the market price of the bond is:
106 + (13/32) = 106.40625
Therefore, the market price of the bond is $1,064.06. Option B is the correct choice.

A Treasury Bond Is Quoted at a Price of 106