17. Suppose the following information is quoted for a hypothetical Treasury security:
Issue
Bid
Ask
Change
Yield
4% 3/21/2040-B
110.25
?
-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 a bid of 110.25 it is 110.25+. What would be the clean price
per $100 of par value?