PRACTICE QUESTIONS Background Chapters 1-5

Bond prices are quoted as a percentage of par value. Bonds do not trade on an accrued interest basis. With bond price quotes, 1 point = $1. Current yield is the ratio of the coupon to the par value of the bond. On one recent day, the 30-year Treasury bond price moved 1 3/32 as yields rose. This means that the price of this bond. Rose by $1.938 ................
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