Use the following information from treasury note & bond table...

Question:

Use the following information from treasury note & bond table

MaturityCouponBidAskedChgAsked Value
2/15/20266.000141.3906141.43750.87502.488

Locate the Treasury issue in Figure 6.3 maturing in February 2026. Assume a par value of $1,000.

Requirement 1:

What is its coupon rate?

Requirement 2:

What is its bid price in dollars?

Requirement 3:

What was the previous day's asked price in dollars?

Bonds:

This question calls for a basic understanding a bond, which is a financial security that represents a debt obligation between a company or government and an investor/lender.

Answer and Explanation: 1

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Requirement 1

The coupon rate is provided as 6.000%.

Requirement 2

The bid price (in dollars) is $1,413.91 (141.3906/100 * $1,000 = $1,413.91).

Re...

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Bonds: Types, Characteristics and Issuing Procedures

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Chapter 10 / Lesson 7
10K

Learn about bond relationships. Read a definition of a secured bond. See a comparison between secured vs unsecured bonds, and term bonds vs serial bonds.


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