Question: in a treasury bond quote with a 1000 face value you find the bid is equalt to 100-24 and thenask is equal to 1---26 you

in a treasury bond quote with a 1000 face value you find the bid is equalt to 100-24 and thenask is equal to 1---26 you could buy this bond for 1008.25

True ( 100 + 26 * 1/32) = 1008.25

Can someone explain how the equation to the left equates to 1008.25

And explain where 1/32nds comes from.

I know the anwser is True, but i'm not sure how to prove that?.. please explain, thank you

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

On July 1, 2024, Waubonsee Ltd. issued $3.2 million of 10-year, 6% bonds at $3,449,427. This price resulted in a market interest rate of 5%. The bonds pay semi-annual interest on July 1 and January...

In a Treasury bond quote with a $ 1 , 0 0 0 face value, you find the bid is equal to 1 0 0 - 2 4 and the ask is equal to 1 0 0 - 2 6 . You could buy this bond for _ _ _ _ _ and sell this bond for _ _...

Question 1 0 3 pts Which of the follwoing statment is true? Revenue bonds are backed by the full revenue of the municipality. In a Treasury bond quote with a $ 1 , 0 0 0 face value, you find the bid...

In a Treasury bond quote with a $ 1 , 0 0 0 face value, you find the bid is equal to 1 0 0 - 2 4 and the ask is equal to 1 0 0 - 2 6 . You could buy this bond for $ 1 , 0 0 8 . 1 2 5 . Group...

Sample Treasury Bond Quote (Example FYI Only) $1,000 par Treasury Bond Maturity Ced Adela Asked Y 11/15/20453.000 107856397650003834 Maturity molyr: Month and year, the bond matures November 15,...

Enable Editing safe to stay in Protected View J. S. Hilsinger, Ltd. Using financial instruments as a promotional tools Case (A) After graduating from college in 1991, Jim Hilsinger spent four years...

Dear all Could shares the question of this problem .thanks About 6.2 The following table shows the information of payment for the two seven-year bonds. Bond A & Bond B. We assume a vield to maturity...

You are among the OTO quote a bid of 1027 and the OTC market makers in the stock of Bio-Engineering, Inc. and d of 102 1/4 and an ask of 102 1/2. Suppose that you have a zero inventory. Dev 1 you...

You are among the OTC market makers in the stock of Bio-Engineering, Inc. and quote a bid of 102 1/4 and an ask of 102 1/2. Suppose that you have a zero inventory. (a) On Day 1 you receive market buy...

Mind solving should show you got your answers 31. As a mid-size company, you have a pension plan which pays out $10 million a year forever. The first payment is exactly one year from now. The term...

Describe the five steps in accounting for the manufacturing activity of a processing department, and explain how they interrelate.

In essay form, describe the process of teaching grammar inductively and deductively. Give examples and explain which one is more effective and why?

What's the forecasted capital expenditure based on the information below? What's the forecasted capital expenditure based on the information below? Net PP&E beginning of period Net PP&E end of period...

George Parker was paid a salary of $ 7 4 , 7 0 0 during 2 0 - - by Umberger Company. In addition, during the year, Parker started his own business as a public accountant and reported a net business...

=+does your table show about the relationship between the net marginal product of capital and steady-state consumption?

=+of 0 percent, 10 percent, 20 percent, 30 percent, and so on. (You will need a calculator with an exponent key for this.) What saving rate maximizes output per worker? What saving rate maximizes...

=+ 5. Draw a well-labeled graph that illustrates the steady state of the Solow model with population