1. If you sell a 6 percent bond to a dealer when the market rate is 7 percent, which one of the following prices will you receive?
A) Bid price.
B) Call price.
C) Bid-ask spread.
D) Par value.
E) Asked price.
2. A Treasury bond is quoted as 99.6325 asked and 99.1250 bid. What is the bid-ask spread in dollars on a $5,000 face value bond?
A) $17.500
B) $.675
C) $16.250
D) $.508
E) $25.375