Final answer:
The correct answer is option A. 99:5/8.The quoted bid price in the Wall Street Journal for a Treasury note with a bid price of $996.25 would be 99:5/8, as Treasury notes are quoted in thirty-seconds of a point.
Step-by-step explanation:
If a Treasury note has a bid price of $996.25, the quoted bid price in the Wall Street Journal would be 99:5/8. Treasury notes are quoted in thirty-seconds of a point. To convert the bid price into the Wall Street Journal format, we take the decimal part of the price, in this case, .625, and convert it to thirty-seconds. Since .625 is equivalent to 5/8, we multiply 5/8 by 32 which equals 20. Therefore, the bid price, when represented in thirty-seconds, is 99:20. However, this is typically reduced to the lowest term, which would be 99:5/8 (since 20/32 is equivalent to 5/8).
In this case, the bid price is given as $996.25. To convert this into a quoted bid price, we need to convert it to a fractional form. We know that the Treasury note price is quoted in 32nds. First, we divide the price by 1000 to get 0.99625. Then, we multiply by 32 to get 31.88, which is approximately 31 and 7/8. Therefore, the quoted bid price is 99:5/8.