A treasury issue is quoted at 102:09 bid and 102:12 ask. What is the least you could pay to...

Question:

A treasury issue is quoted at 102:09 bid and 102:12 ask. What is the least you could pay to acquire a bond?

Bid Price:

The bid price is the price that a seller is willing to purchase the security. In addition, it is considered as the maximum price that the security can be acquired from the perspective of the buyer.

Answer and Explanation: 1

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Apart from the bid price, the ask price represents the minimum price that a dealer is willing to selling the security. Hence, investors must pay the...

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Bond Valuation: Formula, Steps & Examples

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Chapter 7 / Lesson 6
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Learn about bond valuation. Discover the bond value formula, work through examples of how to value a bond, and identify the importance of bond valuation.


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