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Treasury and agency bonds are traded in increments of
A. 1/32 of a dollar.
B. 1/8 of a dollar.
C. 1/32 of a percent of par value.
Answer: C
Treasury and agency bond prices are quoted as percentages of par value. The smallest increment of change in the quoted price is 1/32 of a percent. For example, the smallest possible change on a bond last traded at 98% of par value is a change to 98 1/32 % or 97 31/32% of par value.


A. Option B
B. Option D
C. Option A
D. Option C
Answer: C

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