The stop out yield on a 15-year Treasury bond is 2.58%. What price would every successful bidder
Question:
The stop out yield on a 15-year Treasury bond is 2.58%. What price would every successful bidder pay for a $1,000 par bond?
A.990.10
B.998.66
C.995.42
D. 991.37
Which statement is not correct?
A. The U.S. Treasury sells T-notes and T-bonds through competitive and noncompetitive single-price treasury auctions
b. Single-Price Treasury auctions means all winning bidders pay the same price, which is the highest acceptable price.
c. The coupon rate of Treasury notes is rounded down from stop-out yield to the nearest 1/8th if needed.
D. The highest bid yield accepted is called 'Stop Out'. Bidders who bid less than the stop-out yield receive their full allotment.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill