A Treasury bond has a quoted bid price of 97-04 and a quoted ask price of 97-09.

Fantastic news! We've Found the answer you've been seeking!

Question:

A Treasury bond has a quoted bid price of 97-04 and a quoted ask price of 97-09. What is the amount you will receive if you sell your bond that has a par value of $25,000? Assume the bond has $2.05 of accrued interest per $1000 face amount.

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

See More Books

Posted Date: Dec 02, 2023 08:41 AM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
a) At what level of Q is ATC minimized? What are the values of ATC and of MC at this level of output? b) If K is increased to a fixed 16 units, at what level of Q is ATC minimized, and what are the...
As purchasing agent for Laurentian Enterprises in Quebec City, you ask your buyer to provide you with a ranking of excellent, good, fair or poor for a variety of characteristics for two potential...
Does talking while walking slow you down? A study reported in the journal Physical Therapy (Vol. 72, No. 4) considered mean cadence (steps per minute) for subjects using no walking device, a standard...
The adjusted trial balance for Marine Fishing Centre is as follows: Instructions (a) Prepare an income statement for the year ended March 31, 2017. (b) Prepare a statement of owner's equity. The...
What tasks must be performed if a party files an appeal?
Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B chooses one of two actions (Left or Right). The game has the following payoff matrix, where the first...
Data table Direct Materials Direct Manufacturing Labor Costs incurred: Actual inputs actual prices $206,000 $94,000 Actual inputs standard prices 205,000 93,000 Standard inputs allowed for actual...
Carrie D'Lake, Reed A. Green, and Doug A. Divot share a passion for golf and decide to go into the golf club manufacturing business together. On January 2, 2015, D'Lake, Green, and Divot form the...
Make a written report comparing the governments of Laos, Philippines, and Timor-Leste. In your own opinion
Provide a brief explanation of why strategy should be involved with BPM activities.
How will BPM activity width impact a BPM approach?
Describe the difference between project execution and operational execution.
What is process architecture and what are its typical aspects?
Name a couple of ways in which technology can assist with BPM in your organization.
A store in Iowa advertises that during their Labor Day sale, everything is 25% off, plus they will pay the sales tax. Mike buys shoes for $80 and socks for $5. Since there will be no tax added, what...
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
What is the difference between pledging accounts receivable to secure a loan and factoring accounts receivable? What types of short-term secured financing can a firm use to cover shortfalls?
HighGrowth Company has a stock price of $20. The firm will pay a dividend next year of $1, and its dividend is expected to grow at a rate of 4% per year thereafter. What is your estimate of...
What is the price per $100 face value of a two-year, zero-coupon, risk-free bond? The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 YTM 5.00% 2 5.50% 3 5.75% 4...
Consider the circuit in Figure 8.34. The supply voltages are $V^{+}=10 \mathrm{~V}$ and $V^{-}=-10 \mathrm{~V}$, and the $R_{3}$ and $R_{4}$ resistor values are zero. The transistor...
The transistors in the output stage in Figure 8.34 are all matched. Their parameters are $\beta=60$ and $I_{S}=5 \times 10^{-13} \mathrm{~A}$. Resistors $R_{1}$ and $R_{2}$ are replaced by...
(a) Redesign the class-AB output stage in Figure 8.34 using enhancementmode MOSFETs. Let $R_{3}=R_{4}=0$. Sketch the circuit. (b) Assume bias voltages of $V^{+}=10 \mathrm{~V}$ and \(V^{-}=-10...

A Treasury bond has a quoted bid price of 97-04 and a quoted ask price of 97-09.

Question:

Expert Answer:

The quoted bid price of 9704 refers to a percentage of the par valu... View the full answer

Fundamentals Of Corporate Finance

Students also viewed these finance questions