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How much would you expect to pay for a $10,000 stripped treasury bond quoted at 101:16?

Sagot :

It is $10,262.50.

5/8 of a bond point ($10) =.625 $10 = $6.25; par ($1,000) 102% = $1,020. As a result, the quote reading 102-5/8 equals $1,026.25 ($1,020 plus $6.25) per bond.

Assuming the buyer is buying 10 bonds, we multiply $1,026.25 by 10 bonds to get the total price the consumer will have to pay, which comes out to $10,262.50.

Treasury bonds (sometimes known as T-bonds) are U.S. Federal Government debt securities with maturities longer than 20 years. T-bonds accrue interest on a periodic basis until maturity, at which time the owner is additionally compensated with the principle amount.

To learn more about Treasury bonds here

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