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What price is the dealer most like show

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Reference no: EM133069407

Product

Bid

Offer

10y US Treasury Note

100-25+

100-26++

10y US Interest Rate Swaps

3.0625%

3.07125%

10y Verizon Corporate Bond 

65 basis points

75 basis points

1. A bond dealer is asked to offer $100m US 10y Treasury Notes. What price is the dealer most like show? Please show your answer in decimal point format.

2. A swap deal is asked to enter a 10y swap with a client as the fixed-rate receiver. What price is the dealer most like show?

3. Assume corporate bonds trade at a spread over interest rate swaps. A dealer is asked to offer $50m 10y, Verizon Bonds. What price, in yield to maturity (YTM) terms, is the dealer most likely to quote?

4. Assume the 10y US Treasury Note above is priced at a YTM of 3.125%. Using an average 10y swap rate of 3.0675%, what is the so-called swap spread?

Reference no: EM133069407

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