Final answer:
The Treasury note quoted at 9775 is priced at $977.50, the corporate bond quoted at 103.75 is priced at $1,037.50, and the municipal bond quoted at 10240 is priced at $5,120.00, relative to their respective par values of $1,000 for Treasury and corporate bonds and $5,000 for the municipal bond.
Step-by-step explanation:
To calculate the prices of the three bonds in dollars, we first need to understand the quotes. Bond quotes are typically expressed as a percentage of the bond's par value, with a par value of 100 representing 100% of the bond's face value. The quotes represent the market's current price for the bonds as a percentage of their par values.
The Treasury note quoted at 97.75, with a par value of $1,000, means that the bond is trading at 97.75% of its par value. Therefore, the price of the Treasury note is 97.75/100 * $1,000 = $977.50.
The corporate bond quoted at 103.75, also with a par value of $1,000, indicates that the bond is trading at 103.75% of its par value. This gives a price of 103.75/100 * $1,000 = $1,037.50 for the corporate bond.
Lastly, the municipal bond quoted at 102.40 but with a par value of $5,000 is trading at 102.40% of its par value. Thus, the price of the municipal bond is 102.40/100 * $5,000 = $5,120.00.