If the bid value of a Treasury bond is listed as "112:16",it means that the buyer is willing to pay $1,125 for the bond.

Question

Quizplus · Accepted Answer

The bid value of a Treasury bond is typically quoted as a percentage of its face value, with each point equal to 1% of the face value. In this case, 112:16 would represent a bid of 112 and 16/32 points, or 112.50% of the face value. To calculate the actual dollar amount that the buyer is willing to pay, you would need to multiply this percentage by the face value of the bond. Assuming a face value of $1,000, the buyer would be willing to pay $1,125 for the bond (112.50% x $1,000).

If the Bid Value of a Treasury Bond Is Listed