SIE Exam Question 507: Answer and Explanation

Question: 507

Your customer buys a U.S. T-bond at 103.16. How much did he pay for the bond?

• A. $10,316.00.
• B. 1,035.00.
• C. $103.16.
• D. $1,031.60.

Correct Answer: B

Explanation:

B: T-bonds are quoted as a percentage of par to 32nds of 1%. A quote of 103.16 = 103. 16/32% × 1,000 = $1,035