Medium-and long-term treasury bonds are coupon bonds, which are securities that pay known cash income. However, in the US Treasury bond futures market, the quotation and delivery system of medium and long-term treasury bonds has certain particularity, which makes the application of the above formula more complicated. Let's take the long-term treasury bond futures of the Chicago Board of Trade as an example to illustrate its pricing problem, and the conclusion is also applicable to the medium-term treasury bond futures.

Long-term treasury bond futures quotation

Long-term treasury bond futures are quoted in US dollars and one-third of US dollars, and the quotation is 100 US dollars. Since the contract scale is 100 USD, the quotation of 90-25 USD means that the quotation of 100 USD is 9078 1.25 USD.