T-Notes and Bond Quotations
Like corporate bonds, Treasury notes and bonds are quoted in the secondary market on a price basis where one point equals one percent of par. Unlike corporate bonds, which are quoted in eighths of a percent, government securities are split into units of 32nds. A price quote of 98-11 refers to a price of 98 11/32% of par value, or 98.34375% of par. If the Treasury bond had a par value of $1,000, then the bond would sell for $983.44.
A price of 103-08 refers to a price of 103 8/32% of par, or 103.25% of par. If the Treasury bond had a par value of $1,000, it would sell for $1,032.50.
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Basic Types of Treasury Securities |
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Type |
Maturity |
Purchase Size |
Interest Paid |
Quotes |
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Treasury bills |
One year or less |
$100 up to $5 million |
None; price is discount to par |
Yield |
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Treasury notes |
2 to 10 years |
$100 up to $5 million |
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