KIC000036 - LII'I Ies(continued Price Quotes for Treasury...

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Unformatted text preview: 9/14/2010 LII'I Ies (continued) Price Quotes for Treasury Bills W mingyleld m a bank discount basis: m "den Treasurybill with 100 days tomarun'ty, afice value 0f$100.000. and selling for $99,100 would be scllingwim ndolludiscmmlofD =F—P= $100,000~ $99,l00= $900, Givm D - $990, F= $100,000 and r= 10:, the Treasury bill would be quomd atflac following yi d; 360 $900 360 Y: ——= _ = o ' 1) 3100000100] 32’4”" Treasury Securities (conlinued) > Quote: on Treasury Coupon Sltllritifi ./ mwwllfimofmenumbaofdaysindleacm’uedimerefl paiod ma fiemmbet deays in the coupon period begins with the «amnion affine key dates: the trade dug, settlemml GIG. and dd: ofprevimls coupon payment ( mmdauinhedmeonwhichmemmlon isexemmad. f Thouflleml dale is the date a tranmiun 1': completed I [‘me mama's, seal-ant is the nut humus day ah: the mad: m. ./ mammal a'rmamry enupan security fiom and including mam ofthe previous eoupou plymem up to but excluding the Iefllment date I Amul day wumwnvemion usedfm Tleasuries mp4: e .m mam umm 1.1 Lune-g ,._ mm ”a > The US. Congresshzs charmed entitim to provide funding supponfor the housing and agricultural more offlze US. economy. as well as to gravid: funding for specific U.S, gamma—l pmjem. ) Thematketforthe debt insmnnents issuedby these Manama-chartered unifies is called thefedeml agancysewrin'es market. > Some amuse seenriIi-s an explicitly guaranteed by the US governmeul (risk-free). Snmc of them are not ) Haweva', we have seen that file govmmem may step in when there are issues, over and above the subsidy. ...
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