Final answer:
The corresponding dollar price for a treasury security quoted at 84-14 for a $100,000 par value is $84,437.50, arrived by converting the quote into a decimal percentage and applying it to the par value.
Step-by-step explanation:
If a bond-dealer is quoting a price of 84-14 for a $100,000 par value treasury coupon security, we need to understand the notation to calculate the corresponding dollar price for the treasury security. The quote 84-14 means that the bond is priced at 84 and 14/32 percent of its par value since bond prices are typically quoted in terms of 1/32 of a percent. To calculate the dollar price, you multiply the quoted price by the par value of the bond.
First, convert the fractional price to a decimal:
84-14 = 84 + (14/32) = 84.4375%
Next, apply this percentage to the par value of the bond:
Dollar price = $100,000 * 84.4375% = $84,437.50
Therefore, the corresponding dollar price for the treasury security is $84,437.50.