Suppose the following information is quoted for a hypothetical Treasury
security:
Issue Bid Ask Change Yield
4% 3/21/2040-B 110.25 29 -5 ?
(a) What is the bid price per $100 of par value?
(b) If an investor wanted to purchase $100,000 of par value of this Treasury security, what is
the clean price?
(c) What is the ask price per $100 of par value?
(d) If an investor wanted to purchase $100,000 of par value of this Treasury security, what is
the clean price?
(e) What does the “Change” of -5 mean?
(f) What does the Yield column mean?
(g) Suppose that instead of bid of 110.25 it is 110.25+, what would be the clean price per $100
of par value?
