This problem refers to bond quotes in Figure 7.4. Calculate the price of the Canada Jun 01/15 to prove that it is 111.23 as shown. Assume that today is January 05, 2012.

Figure 7.4

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FIGURE 7.4 Sample bond quotations PC Bond Indices on 2012.01.05 Data provided by: National Post Average Yield 2.35 Bond Index Index Level Daily Total Return Daily Price Return MTD Total Return Universe 861.18 0.16 0.15 -0.21 Short 628.24 1.55 0.04 0.03 0.01 Mid 916.27 2.60 0.13 0.12 -0.08 Long 1,281.73 3.44 0.37 0.36 -0.68 Canada 194.85 1.54 0.14 0.13 -0.23 All Govt. -0.25 846.54 2.03 0.16 0.15 Federal 0.11 -0.17 784.90 1.54 0.12 Provincial 0.22 -0.37 978.32 2.75 0.23 Municipal All Corp Maple 0.14 1,019.67 2.71 0.15 -0.24 3.25 0.13 925.45 0.14 -0.10 4.10 126.41 0.09 0.07 -0.04 RRB 523.46 0.28 0.52 0.51 -0.24 91 day Tbill 0.82 387.01 0.02 n. a. Source: financialpost.com/markets/data/bonds-pc.html, Jan 05, 2012; Used with permission.