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It is Jamuary 9, 2013. The price of a Treasury bond with a 12% coupon that matures on October 12, 2020, is quoted as 102-07. What is the cash price?

It is Jamuary 9, 2013. The price of a Treasury bond with a 12% coupon that matures on October 12, 2020, is quoted as 102-07. What is the cash price?

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
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It is January 9, 2013. The price of a Treasury bond with a 12% coupon that matures on October 12, 2020, is quoted as 102-07. What is the cash price? The price of a 90-day Treasury bill is quoted as 10.00. What contimuously compounded return (on an actual/365 basis) does an investor earn on the Treasury bill for the 90-day period?
Transcribed Image Text:It is January 9, 2013. The price of a Treasury bond with a 12% coupon that matures on October 12, 2020, is quoted as 102-07. What is the cash price? The price of a 90-day Treasury bill is quoted as 10.00. What contimuously compounded return (on an actual/365 basis) does an investor earn on the Treasury bill for the 90-day period?
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