Face Value of Treasury Bonds

GTucker · November 9, 2009, 5:53am

Is the face value of Treasury Bonds always $1000? What about T - bills (zero coupon) and corporate bonds? If a U.S. Treasury bond is quoted at 92-16, the price of the bond is: A) $92.50. B) $925.00. C) $92.16. Your answer: A was incorrect. The correct answer was B) $925.00. 92 − 16 = 92 16/32 = 92.5% of par value 0.925 × $1,000 = $925

mohsinulhaq · November 9, 2009, 6:24am

Hey what topic is this specific question from?

GTucker · November 10, 2009, 4:38am

It is from the fixed income section, not sure exactly what reading. Got it from Scwesher Q Banks.

varundarji · November 10, 2009, 2:46pm

2nd chapter from Fixed Income… Reading 61

manowar · November 10, 2009, 3:32pm

From what i have been learn in the university, we used the text book of Bodie and Kane actually, without stated otherwise the face value of T-bond is $1000.