U.S. Treasury quotes from the WSJ on Oct. 15, 2003:
-What is the duration of the above Treasury note? Use the asked price to calculate the duration.Recall that Treasuries pay interest semiannually.
A)3.86 years.
B)1.70 years.
C)2.10 years.
D)1.90 years.

Question

U.S. Treasury quotes from the WSJ on Oct. 15, 2003:  
-What is the duration of the above Treasury note? Use the asked price to calculate the duration.Recall that Treasuries pay interest semiannually.
A)3.86 years. 
B)1.70 years. 
C)2.10 years. 
D)1.90 years.

Quizplus · Accepted Answer

In addition to paying interest semi-annually, also recall that Treasuries are quoted on 32S1U1P1ndsS1S1P0, so 102:8 = 102 + (8/32) = 102.25 11efb878_4660_310b_9137_55a28c4cfe06_TB1314_00

US Treasury Quotes from the WSJ on Oct