Ask about Bonds: why are Bond prices quoted in fractions of a point (32pts)?

[minhphc]

When the bond is quoted 94-05 means 94 and 5/32 of par value. I don't know why people used 32nds to quote bond? why not 5/100 pts for easy to calculate?
Could anybody help me? thank so much!

 

[pumpkin]

Its only for treasury bonds, so it does not apply to all bonds.

 

[minhphc]

Yes, thank Pumpkin! But do you know why people used 32nds?

 

[chad. sandstedt]

minhphc wrote:Yes, thank Pumpkin! But do you know why people used 32nds?
I believe it’s because the old ticker machines only had 32 symbols making each symbol (1/32) a tick.

 

[pumpkin]

sorry i dont know… thanks chad