BONDS and BOND VALUATION (Students)Interest Rates or YieldsBasis Point:Prices:Treasury Securities(Bonds & Notes)Notes have a maturity of 1 yr10 yrs, Bonds have a maturity of 10 yrs30 yrs.Each point in price are divided into 32nd’s or 64th’s instead of 8ths or tenths.This implies that a quote in the WSJ of 90:05 means …Likewise, 85:31 = 85 31/32 = $859.69 on 1000 Par.So,prices proceed as follows: 89:31, 90:00,90:01, 90:02, 90:03…90:29, 90:30, 90:31, 91:00, etc.RateMaturityMo/YrBidAskedChgAskedYield1 5/8Feb 06 n99:3099:31+13.221 1/2Mar 06 n99:2299:23+14.182 1/4Apr 06 n99:1799:18....4.482May 06 n99:1399:14+14.454 5/8May 06 n100:00100:01....4.436 7/8May 06 n100:16100:17-14.382 1/2May 06 n99:1399:14+14.512 3/4Jun 06 n99:1199:12+14.5Corporate Bonds:Prices are quoted in fractions of a point in 1000th’s of a pointeg.98.203, 105.685, etc. and are based on a par of 1000, so these would be priced at$982.03 and $1056.85.Bonds Features1)Coupon Rate–1