In a Treasury bond quote with a $1,000 face value,you find the bid is equal to 100-24 and the ask is equal to 100-26. You could buy this bond for $1,008.125.

Name: In a Treasury bond quote with a $1,000 face value,you find the bid is equal to 100-24 and the ask is equal to 100-26. You could buy this bond for $1,008.125.
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Quizplus · Accepted Answer

The ask price of 100-26 translates to 100 + 26/32 = 100.8125% of the face value. Therefore, the cost to buy the bond is 100.8125% of $1,000, which equals $1,008.125.

In a Treasury Bond Quote with a $1,000 Face Value,you