A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has a coupon rate of 11.5 percent. What is the yield value of a 32nd for this bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Answer is complete but not entirely correct. Yield value (in basis points) 0.0996

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has a coupon rate of 11.5 percent. What is the yield
value of a 32nd for this bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Answer is complete but not entirely correct.
Yield value (in basis points)
0.0996
Transcribed Image Text:A Treasury bond with 8 years to maturity is currently quoted at 108:16. The bond has a coupon rate of 11.5 percent. What is the yield value of a 32nd for this bond? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Answer is complete but not entirely correct. Yield value (in basis points) 0.0996
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