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What is the asking price on the 2.750 percent November 2023 T-bond if the face value of the bond is $10,000? b. What is the bid price on the 0.500 percent August 2016 T-note if the face value of the bond is $10,000?

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Answer:

Ask Price,2023T-Bond=$10,801.20

Bid Price,2016T-note=$10,003.91

Step-by-step explanation:

Asking Price is obtained by multiplying the ask price by face value then dividing everything by 100:-

[tex]Asking Price=\frac{Ask \ rate}{100}*Face \ Value\\=\frac{108.0120}{100}*10000\\=10801.20[/tex]

Bid Price is obtained my multyplying bid rate by face value then dividing everything by 100:-

[tex]Bid \ Price=\frac{Bid \ Rate}{100}*Face \ Value\\=\frac{100.0391}{100}*10000\\=10003.91[/tex]

*Applicable rates for the bid/ask prices are obtained from the link and picture below.

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