If you purchased a U.S. Treasury at a price of $105:08 with a par amount of...
If you purchased a U.S. Treasury at a price of $105:08 with a
par amount of $5,000, how much did
you pay? _______
A) $5,000
B) $5,250
C) $4,762
D) $5,262
Homework Answers
Fraction of 08 = 08/32 = 25%
Price paid is at 105.25%
Payment for the bond = 5000 * 105.25 % = 5262.5
Ans : 5262 (rounded off)
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