Please clarify me.

volabos · January 11th, 2008, 4:51 pm

Hi all,My question is very basic. While I was reading the HULL book, I come through [page:103]:Treasury bond prices in US are quoted in dollars and thirty seconds of a dollar. .................... Thus a quote of 90-05 indicates that the quoted price for a bond with a face value of $100,000 is $90,156.25.My questions is :1. What is thirty second of dollar2. How the value $90,156.25 has come?If anyone clarify me I will be grateful.Regards,

gc · January 11th, 2008, 4:59 pm

QuoteWhat is thirty second of dollar?1/32QuoteHow the value $90,156.25 has come?$90,156.25 = $(90 + 5/32)Have a good week-end!

volabos · January 11th, 2008, 5:27 pm

Thanks GC