A few days ago
MJ

Finance question?

In September 2006 a Treasury note was selling for $1225.13 and matures in November 2016. The Wall Street Journal lists the note’s ask price today as 122:10. Which means it is selling for

(122 + 10/32)*10 = $1223.31, which is a decrease in price.

But Interest rates decreased twice over the last year, so shouldn’t the note’s price increase?

Top 1 Answers
A few days ago
William R

Favorite Answer

read here about yield curve theory

http://en.wikipedia.org/wiki/Yield_curve

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