Refer to the T-note and T-bond quotes.

a.) What is the asking price on the 2.750 percent November 2042 T-bond if the face value of the bond is $10,000?

b.) What is the bid price on the 3.125 percent August 2013 T-note if the face value of the bond is $10,000?

Show work if you have any please.

 

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Part 2 Securities Markets 168 TABLE 6-1 Treasury Note and Bond Quote U.S. Treasury Strips Tuesday, July 16, 2013 U.S. zero-coupon STRIPS allow investors to hold the interest and princinal components of eligible Treasury notes and bonds as separate securities STRIPS offer no interest payment; investors receive payment only at maturity. Quotes are as of 3 p.m. Easterm time based on transactions of $1 million or more. Yields calculated on the ask quote. Maturity Treasury Notes & Bonds Tuesday, July 16, 2013 Treasury note and bond data are representative over-the-counter quotations as of 3 p.m. Eastern time. For nates and bonds callable prior to maturity, yields are computed to the earliest call date tor issues quoted above par and to the maturity date for issues below par. Chg Asked yield Asked Asked yield Bid Bid Asked Chg Coupon 3.375 100.1250 L00.1406 4.250 100.3359 100.3438 3.125 100.3750 100.3828 0.750 100.1094 100.1172 0.125 100,0156 100.0234 0.500 100.1094 100.1172 2.750 100,7734 100.7813 4.250 101.3750 101.3828 2.000 100.7109 100.7188 Maturity 731/2013 8/LS/2013 -0.0078 -0.257 Treasury Bond, Stripped Principal 0.25 0.034 0.024 99.605 99.251 98.984 98.684 98.350 97.888 86.684 84.933 99.589 99.231 98.961 -0.0078 -0.040 0.36 2015 Feb 15 2015 Aug 15 2015 Nov 15 2016 Feb 15 2016 May 15 2016 Aug 15 2020 Aug 15 2021 Feb 15 2021 May 15 2021 Aug 15 2021 Nov 15 2022 Aug 15 2026 Aug 15 2027 Feb 15 2027 Aug 15 2027 Nov 15 2028 Aug 15 2039 Aug 15 2039 Nov 15 2043 Feb 15 2043 May 15 -0.0078 -0.005 40.031 0.44 0.51 0.038 8/31/2013 unch. 0.049 0.053 0.065 0.089 0.113 915/2013 9/302013 98.659 98.322 97.858 86.623 84.869 84.038 83.104 82.191 79.857 66.397 64.822 unch. 0.59 0.023 0.037 0.044 0.065 0.109 unch. 0.69 10/15/2013 101/2013 11/152013 11/30/2013 -0.0078 -0.0078 2.03 2.17 unch. 0.099 0.101 0.103 0.152 0.223 0.204 0.206 0.207 2.22 2.29 2.36 2.48 3.14 3.21 3.27 3.30 -0.0078 0.0078 unch. 10L.1563 84.103 3/31/2014 4/30/2014 4/30/2014 5/31/2014 1.750 101.1328 121 0.250 100.0938 100.1016 1.875 101.3672 101.3750 83.171 0.129 82.259 79.928 66.483 64.909 63.311 62.559 60.476 38,236 37.741 32.789 0.0078 -0.0078 0.250 100.1016 100.1094 2250 101.8281 101.8359 0.250 100.0977 100.1211 2.625 102.3594 102.3672 99.9766 2625 102.5547 1012.5625 4.250 104.3984 0.250 100.0938 2375 102.4688 0.124 0,141 5/31/2014 630/2014 6/30/2014 T/31/2014 -0.0039 D078 0.123 0.141 63.224 0.140 0.155 0.165 0.125 99.9844 0.0078 62.471 G0.386 unch. 3.36 3.72 3.73 7/31/2014 0.255 104.4063 unch 0.0078 8/15/2014 8/31/2014 8/31/2014 9/30/2014 0.251 100.1016 0,159 38.138 37.643 0.250 102.4766 unch. 0.165 32.694 0.268 3.81 0250 10.078I 2375 102.6406 0.250 100.0859 100.0938 2375 102.7969 102 8125 4.250 105.3516 0.166 0.167 0.177 100.1016 102.656 32.388 32.483 0.267 3.81 9/30/2014 10/31/2014 10/31/2014 I/15/2014 11/30/2014 D0078 Treasury Note, Stripped Principal DA078 0.188 0.04 2013 Aug 15 2014 Feb 15 2014 Aug 15 2015 Feb 15 2015 Aug 15 2019 Oct 31 2020 Jan 31 2022 May 15 2022 Nov 15 105.3828 -1.0234 0.192 99.996 99.997 unch. 99.932 99.938 unch 0.11 100.0781 2.125 102.6250 102.6406 0.250 100.0547 100.0625 99.8750 103 5078 4.625 112.6484 112.679? 2.750 106.4609 106.5234 108.3047 0 250 100703 D.0078 0.193 99.810 99.821 -0.001 0.022 0.17 0.196 0.206 11/3IV2014 unch. 99.585 0.0156 0.0078 12/15/2014 99.601 0.25 12/31/2014 0.125 99.8594 0.211 99.226 99.246 0.040 0.36 1.78 12/31/2014 2,625 103.4844 0,0156 0.207 89.400 89.456 0.093 0.1094 0.760 88.548 80.706 79.056 11/15/2016 88.605 0.084 1.86 11A0/2016 0,0469 0,785 80.777 0.149 0.173 2.43 2.53 3.250 108.2422 0.0703 0.807 (1,915 12/31/2016 79.129 3/31/2017 4/30/2017 3.250 108.4531 108.4844 3.125 108.0313 108.0625 4.500 113.2188 113.2813 0.O859 Stripped Coupon Interest 0.0625 0.953 2013 Aug 15 2013 Nov 15 2016 Jun 30 2016 Aug 15 2021 Aug 15 2021 Nov 15 2022 Feb 15 2022 May IS 2022 Aug 15 2022 Nov 15 2023 May 15 2023 Aug 15 2033 Aug 15 2033 Nov 15 2034 Feb 15 2039 Aug 15 2039 Nov 15 2042 Nov 15 2043 Feb 15 2043 May 15 5/15/2017 0.0625 0.959 99.995 99.996 unch. unch. 0.05 182OD 0.977 1019 5/31/2017 2.750 106.6875 106.7188 99.967 99.970 98.133 97.934 2.500 105.6953 105.7266 (1.0859 0.09 98.104 0.055 0.057 0.102 7731/2017 2.375 105.1875 105.2188 0.0938 1.052 0.64 97.903 82.906 81.989 81.195 8/15/2017 4.750 114.7109 114.7422 0.0859 1.049 0.68 2.32 82.972 82.056 81.264 80.478 79.624 78.729 77.013 76.121 48.484 48.003 47.497 37.895 37,498 32.982 32.646 32.340 8/31/2017 L875 103.1094 103.1406 0.1016 1.094 9/3IN2017 L875 103.0391 103.0703 0.1016 1.125 0.103 0.146 0.149 2.39 5/31/2020 1.375 96.3828 964297 0.0625 1.932 2.43 80.408 79.553 78.657 76.939 76.045 48.388 47.907 47.401 37.798 37.401 32.887 6/3V2020 1.875 99 5313 2.625 104 4766 104.5234 2.625 104.2031 104.2500 99.5469 0.0938 1.945 2.47 8/15/2020 0.0781 1.938 0.152 2.53 II/15/2020 2/15/2021 0.1641 1.998 0.154 2.58 3.625 110.9609 111.0078 3.125 107.1953 107.2266 8.125 143.9531 144.00X10 2.125 0.1484 2.049 0.159 0.160 0.247 0.247 0.247 0.273 0.273 0.266 0.266 0.266 5/15/2021 0.1484 2118 2.67 5/15/2021 0.1328 2.020 2.72 8/15/2021 11/15/2021 8/15/2142 99.3672 99.3828 98.0078 0,1406 2.209 3.64 2.000 97.9922 0.1641 2.264 3.64 3.65 3.76 3.76 3.82 3.82 3.82 2750 84.9453 84.9609 0.4297 0.4297 3.587 3.589 11/15/2042 2.750 84.8359 84.8516 2/15/2043 5/15/2043 3.125 2.875 91.8281 91.8906 0.4375 3.571 87.0313 87.0938 04453 3.583 32.552 32.246 Source: The Wall Street Journal Online, July 17, 2013. www.wsj.com STRIPS. In 1985, the Treasury began issuing 10-year r cial institutions using a book-entry svet STRIP Registered Interest and D note Part 2 Securities Markets 168 TABLE 6-1 Treasury Note and Bond Quote U.S. Treasury Strips Tuesday, July 16, 2013 U.S. zero-coupon STRIPS allow investors to hold the interest and princinal components of eligible Treasury notes and bonds as separate securities STRIPS offer no interest payment; investors receive payment only at maturity. Quotes are as of 3 p.m. Easterm time based on transactions of $1 million or more. Yields calculated on the ask quote. Maturity Treasury Notes & Bonds Tuesday, July 16, 2013 Treasury note and bond data are representative over-the-counter quotations as of 3 p.m. Eastern time. For nates and bonds callable prior to maturity, yields are computed to the earliest call date tor issues quoted above par and to the maturity date for issues below par. Chg Asked yield Asked Asked yield Bid Bid Asked Chg Coupon 3.375 100.1250 L00.1406 4.250 100.3359 100.3438 3.125 100.3750 100.3828 0.750 100.1094 100.1172 0.125 100,0156 100.0234 0.500 100.1094 100.1172 2.750 100,7734 100.7813 4.250 101.3750 101.3828 2.000 100.7109 100.7188 Maturity 731/2013 8/LS/2013 -0.0078 -0.257 Treasury Bond, Stripped Principal 0.25 0.034 0.024 99.605 99.251 98.984 98.684 98.350 97.888 86.684 84.933 99.589 99.231 98.961 -0.0078 -0.040 0.36 2015 Feb 15 2015 Aug 15 2015 Nov 15 2016 Feb 15 2016 May 15 2016 Aug 15 2020 Aug 15 2021 Feb 15 2021 May 15 2021 Aug 15 2021 Nov 15 2022 Aug 15 2026 Aug 15 2027 Feb 15 2027 Aug 15 2027 Nov 15 2028 Aug 15 2039 Aug 15 2039 Nov 15 2043 Feb 15 2043 May 15 -0.0078 -0.005 40.031 0.44 0.51 0.038 8/31/2013 unch. 0.049 0.053 0.065 0.089 0.113 915/2013 9/302013 98.659 98.322 97.858 86.623 84.869 84.038 83.104 82.191 79.857 66.397 64.822 unch. 0.59 0.023 0.037 0.044 0.065 0.109 unch. 0.69 10/15/2013 101/2013 11/152013 11/30/2013 -0.0078 -0.0078 2.03 2.17 unch. 0.099 0.101 0.103 0.152 0.223 0.204 0.206 0.207 2.22 2.29 2.36 2.48 3.14 3.21 3.27 3.30 -0.0078 0.0078 unch. 10L.1563 84.103 3/31/2014 4/30/2014 4/30/2014 5/31/2014 1.750 101.1328 121 0.250 100.0938 100.1016 1.875 101.3672 101.3750 83.171 0.129 82.259 79.928 66.483 64.909 63.311 62.559 60.476 38,236 37.741 32.789 0.0078 -0.0078 0.250 100.1016 100.1094 2250 101.8281 101.8359 0.250 100.0977 100.1211 2.625 102.3594 102.3672 99.9766 2625 102.5547 1012.5625 4.250 104.3984 0.250 100.0938 2375 102.4688 0.124 0,141 5/31/2014 630/2014 6/30/2014 T/31/2014 -0.0039 D078 0.123 0.141 63.224 0.140 0.155 0.165 0.125 99.9844 0.0078 62.471 G0.386 unch. 3.36 3.72 3.73 7/31/2014 0.255 104.4063 unch 0.0078 8/15/2014 8/31/2014 8/31/2014 9/30/2014 0.251 100.1016 0,159 38.138 37.643 0.250 102.4766 unch. 0.165 32.694 0.268 3.81 0250 10.078I 2375 102.6406 0.250 100.0859 100.0938 2375 102.7969 102 8125 4.250 105.3516 0.166 0.167 0.177 100.1016 102.656 32.388 32.483 0.267 3.81 9/30/2014 10/31/2014 10/31/2014 I/15/2014 11/30/2014 D0078 Treasury Note, Stripped Principal DA078 0.188 0.04 2013 Aug 15 2014 Feb 15 2014 Aug 15 2015 Feb 15 2015 Aug 15 2019 Oct 31 2020 Jan 31 2022 May 15 2022 Nov 15 105.3828 -1.0234 0.192 99.996 99.997 unch. 99.932 99.938 unch 0.11 100.0781 2.125 102.6250 102.6406 0.250 100.0547 100.0625 99.8750 103 5078 4.625 112.6484 112.679? 2.750 106.4609 106.5234 108.3047 0 250 100703 D.0078 0.193 99.810 99.821 -0.001 0.022 0.17 0.196 0.206 11/3IV2014 unch. 99.585 0.0156 0.0078 12/15/2014 99.601 0.25 12/31/2014 0.125 99.8594 0.211 99.226 99.246 0.040 0.36 1.78 12/31/2014 2,625 103.4844 0,0156 0.207 89.400 89.456 0.093 0.1094 0.760 88.548 80.706 79.056 11/15/2016 88.605 0.084 1.86 11A0/2016 0,0469 0,785 80.777 0.149 0.173 2.43 2.53 3.250 108.2422 0.0703 0.807 (1,915 12/31/2016 79.129 3/31/2017 4/30/2017 3.250 108.4531 108.4844 3.125 108.0313 108.0625 4.500 113.2188 113.2813 0.O859 Stripped Coupon Interest 0.0625 0.953 2013 Aug 15 2013 Nov 15 2016 Jun 30 2016 Aug 15 2021 Aug 15 2021 Nov 15 2022 Feb 15 2022 May IS 2022 Aug 15 2022 Nov 15 2023 May 15 2023 Aug 15 2033 Aug 15 2033 Nov 15 2034 Feb 15 2039 Aug 15 2039 Nov 15 2042 Nov 15 2043 Feb 15 2043 May 15 5/15/2017 0.0625 0.959 99.995 99.996 unch. unch. 0.05 182OD 0.977 1019 5/31/2017 2.750 106.6875 106.7188 99.967 99.970 98.133 97.934 2.500 105.6953 105.7266 (1.0859 0.09 98.104 0.055 0.057 0.102 7731/2017 2.375 105.1875 105.2188 0.0938 1.052 0.64 97.903 82.906 81.989 81.195 8/15/2017 4.750 114.7109 114.7422 0.0859 1.049 0.68 2.32 82.972 82.056 81.264 80.478 79.624 78.729 77.013 76.121 48.484 48.003 47.497 37.895 37,498 32.982 32.646 32.340 8/31/2017 L875 103.1094 103.1406 0.1016 1.094 9/3IN2017 L875 103.0391 103.0703 0.1016 1.125 0.103 0.146 0.149 2.39 5/31/2020 1.375 96.3828 964297 0.0625 1.932 2.43 80.408 79.553 78.657 76.939 76.045 48.388 47.907 47.401 37.798 37.401 32.887 6/3V2020 1.875 99 5313 2.625 104 4766 104.5234 2.625 104.2031 104.2500 99.5469 0.0938 1.945 2.47 8/15/2020 0.0781 1.938 0.152 2.53 II/15/2020 2/15/2021 0.1641 1.998 0.154 2.58 3.625 110.9609 111.0078 3.125 107.1953 107.2266 8.125 143.9531 144.00X10 2.125 0.1484 2.049 0.159 0.160 0.247 0.247 0.247 0.273 0.273 0.266 0.266 0.266 5/15/2021 0.1484 2118 2.67 5/15/2021 0.1328 2.020 2.72 8/15/2021 11/15/2021 8/15/2142 99.3672 99.3828 98.0078 0,1406 2.209 3.64 2.000 97.9922 0.1641 2.264 3.64 3.65 3.76 3.76 3.82 3.82 3.82 2750 84.9453 84.9609 0.4297 0.4297 3.587 3.589 11/15/2042 2.750 84.8359 84.8516 2/15/2043 5/15/2043 3.125 2.875 91.8281 91.8906 0.4375 3.571 87.0313 87.0938 04453 3.583 32.552 32.246 Source: The Wall Street Journal Online, July 17, 2013. www.wsj.com STRIPS. In 1985, the Treasury began issuing 10-year r cial institutions using a book-entry svet STRIP Registered Interest and D note