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Closing bond prices for Friday, January 16th, 199X.

Bond Curr Yld Vol Net Close Chg
MMSCorp11s18 12.2 100 90 +1/2
MaxCo10s10 10 20 100 ----
STC zr05 ---- 15 45 1/2 -1/8
SamCorp9s07 cv 50 108 1/4 ----
What was the closing price of MMS Corp bonds on Thursday, January 15th?

a. 89 1/2
b. 90
c. 90 1/2
d. 100

1 Answer

5 votes

Final Answer:

Based on the information provided for Friday, January 16th, the closing price of MMSCorp11s18 bonds was 90 + 1/2. Therefore, the closing price of MMS Corp bonds on Thursday, January 15th, would be the same, which is 90 (Option B).

Step-by-step explanation:

On Thursday, January 15th, the closing price for MMSCorp11s18 bonds can be derived from the information provided for Friday, January 16th. On Friday, these bonds closed at 90 + 1/2. The notation "90 + 1/2" indicates a price of 90 plus half of a point. In the bond market, a price change of 1/2 refers to a movement of 50 cents per bond.

Therefore, the previous day's closing price would have been 90 - 1/2, or 89 1/2. Bond prices often fluctuate by fractions or points, and understanding these notations helps track their daily changes. In this case, working backward from the given Friday price of 90 + 1/2, the price on Thursday, January 15th, for MMSCorp11s18 bonds was 89 1/2.

Correct answer: b. 90

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