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____ [38]
4 years ago
11

A 10-year 4 3/4% Treasury Note is quoted at 95-11 - 95-15. The note pays interest on Jan 1st. and Jul. 1st. A customer buys 10M

of the notes. Approximately how much will the customer pay, disregarding commissions and accrued interest?
Business
1 answer:
Zanzabum4 years ago
7 0

Answer:

The customer will pay, disregarding commissions and accrued interest $9,546.88 .

Explanation:

According to the given data we have that A customer buys 10M of the notes "10 M" means that the customer is buying $10,000 par value of the notes-

The Treasury Note is quoted at 95-11 - 95-15

In this case A customer will buy at ask price, which is 95 and 15/32 nds = 95.46875%

Therefore, 95.46875% of $10,000 par = $9,546.88

The customer will pay, disregarding commissions and accrued interest $9,546.88 .

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OR

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