Investments, tenth edition

U.S. Treasury Quotes

MATURITY

Jun  15 13

Jan  15 15

Jun  30 16

Jul   31 18

Nov 15 18

Feb  15 21

Feb  15 26

May 15 30

Feb  15 36

May 15 42

COUPON

1.125

0.250

1.500

2.250

9.000

7.875

6.000

6.250

4.500

3.000

BID

100.8203

100.0391

104.1563

108.4922

150.3750

154.2344

149.1484

160.2190

138.4063

108.8047

ASKED

100.8281

100.0469

104.1875

108.5391

150.4219

154.3281

149.2266

161.0000

138.4844

108.8672

CHANGE

0.0078

0.0547

0.1016

0.0938

0.1719

0.1875

0.1484

0.0781

0.1641

0.1328

ASKED

YIELD (%)

0.177

0.231

0.421

0.790

0.770

1.172

1.869

2.117

2.362

2.572

 Figure 14.1 

Prices and yields of U.S. Treasury bonds

   Source:  The Wall Street Journal Online,  July 31, 2012. Reprinted by 

 permission of Dow Jones & Company, Inc. © 2012 Dow Jones & Company. 

All Rights Reserved Worldwide. 

1

 Recall that the bid price is the price at which you can sell the bond to a dealer. The ask price, which is slightly 

higher, is the price at which you can buy the bond from a dealer.  

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7/17/13   3:51 PM

7/17/13   3:51 PM

Final PDF to printer

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  C H A P T E R  

1 4

  Bond Prices and Yields 

447

Therefore, the ask price is 108.5391% of par, or $1,085.391. The minimum price 

increment, or tick size, in  The Wall Street Journal  listing is 1/128, so this bond may also be 

viewed as selling for 108 

69

⁄

128

      percent  of  par  value.  

2

  

 

 The last column, labeled “Ask yield,” is the yield to maturity on the bond based on the 

ask price. The yield to maturity is a measure of the average rate of return to an investor 

who purchases the bond for the ask price and holds it until its maturity date. We will have 

much to say about yield to maturity below.