If a U.S.Treasury note has a bid price of $975,the quoted bid price in the Wall Street Journal would be
A) 97:50
B) 97:16
C) 97:80
D) 94:24
E) 97:75

Question

Quizplus · Accepted Answer

The bid price for a U.S. Treasury note is quoted as a percentage of its par value, which is $100. If the bid price is $975, that means the percentage bid price is 97.5. However, the Wall Street Journal only reports bid prices in increments of 1/32 of a point, so we need to round the percentage bid price to the nearest 1/32. In this case, the nearest 1/32 below 97.5 is 97:16. Therefore, the quoted bid price in the Wall Street Journal would be B) 97:16.

If a USTreasury Note Has a Bid Price of $975,the Quoted Bid