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Here is a list of bond transactions on May 15, 2009. For each transaction list the transaction price. Price Face Amount 1 Bond 10.75s of 5/15/2011 4.25s of 11/15/2011 7.25s of 5/15/2012 112-2^5/8 99-14+ 107-4 $10,000 $1,000 $1,000,000

Here is a list of bond transactions on May 15, 2009. For each transaction list the transaction price. Price Face Amount 1 Bond 10.75s of 5/15/2011 4.25s of 11/15/2011 7.25s of 5/15/2012 112-2^5/8 99-14+ 107-4 $10,000 $1,000 $1,000,000

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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What is the transaction price for each transaction in the image. The prices have ticks so calculate the dollar amount for each transaction with the information given.

Here is a list of bond transactions on May 15, 2009. For each transaction, the transaction price is listed. | Bond | Price | Face Amount | |-------------------------|------------|--------------| | 10.75s of 5/15/2011 | 112-2^5/8 | $10,000 | | 4.25s of 11/15/2011 | 99-14+ | $1,000 | | 7.25s of 5/15/2012 | 107-4 | $1,000,000 | In this table: - "Bond" refers to the specific bond, identified by its interest rate and maturity date. - "Price" indicates the transaction price expressed in traditional bond pricing terms. - "Face Amount" is the nominal or face value of the bond.
Transcribed Image Text:Here is a list of bond transactions on May 15, 2009. For each transaction, the transaction price is listed. | Bond | Price | Face Amount | |-------------------------|------------|--------------| | 10.75s of 5/15/2011 | 112-2^5/8 | $10,000 | | 4.25s of 11/15/2011 | 99-14+ | $1,000 | | 7.25s of 5/15/2012 | 107-4 | $1,000,000 | In this table: - "Bond" refers to the specific bond, identified by its interest rate and maturity date. - "Price" indicates the transaction price expressed in traditional bond pricing terms. - "Face Amount" is the nominal or face value of the bond.
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