Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote in message news:<m3isa4hjka.fsf[at]animato.home.lan> ...
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I just learned that bonds are quoted at 1/10th their price. So it now
makes more sense to me! But the Markets Diary of the WSJ quotes a
10-YR Treasury Note but doesn't not give the maturity date. So how am
I supposed to interpret this quote if I don't know the maturity date?

Thanks!

Rich Carreiro <rlcarr[at]animato.arlington.ma.us> writes:

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Slight correction. Original purchaser may have paid
a bit over or under the $1000. But he won't pay much different
because the Treasury would have chosen the coupons of
newly issued Treasuries to roughly match YTMs prevailing
at the time of the auction.

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Rich Carreiro rlcarr[at]animato.arlington.ma.us

I am just starting to look at bonds and have these questions: 1) The
the ten year treasury's price and yield are quoted in the WSJ, which
maturity is this? 2) How can Tuesday's 10 Treasury with a face value
of $1,000 US be selling for 101 21/32, didn't the original purchaser
pay $1,000 for this note?

Thanks!

googlepost123[at]yahoo.com (Joe) writes:

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It should say in the quote. Treasury quotes I've usually seen give
the month and year of maturity, the price, the coupon, and the YTM.

2) How can Tuesday's 10 Treasury with a face value
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Yes, the original purchaser did pay $1000 for it.

Now, what's the *coupon* (not the YTM) rate on the bond you're looking
at? And what are current interest rates of the same term as your
bond? That's your answer as to why it is priced at 101 21/32.

Put another way, if I buy a bond at $1000 with a 3% coupon, and a few
years later newly issued bonds only carry a 2% coupon, wouldn't you
expect my bond to trade for more than $1000?

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Rich Carreiro rlcarr[at]animato.arlington.ma.us