Solved

A $5,000 Face Value Bond Has a Bid Quote of 99.8742

Question 84

Multiple Choice

A $5,000 face value bond has a bid quote of 99.8742 and a bid-ask spread of 0.1356.What price will you receive if you sell this bond today? Ignore any accrued interest or trading costs.


A) $998.74
B) $1,000.10
C) $5,009.02
D) $4,993.71
E) $5,010.27

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q79: _bonds pay interest that is taxed only

Q80: TJ Machine bonds have a coupon rate

Q81: River Tours has 5.8 percent coupon bonds

Q82: Which of the following are generally included

Q83: Delray bonds offer a coupon rate of

Q85: Long-term debt securities that are issued but

Q86: Assume you purchase a bond with a

Q87: The upper and lower limits on the

Q88: Which one of these definitions is correct?<br>A)Negative

Q89: According to the Fisher effect,a decrease in