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    Exam 5: Interest Rate and Bond Valuation
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    A Treasury Bond Is Quoted as 101: 18 Asked and 101
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A Treasury Bond Is Quoted as 101: 18 Asked and 101

Question 24

Question 24

Multiple Choice

A Treasury bond is quoted as 101: 18 asked and 101:
16 bid.What is the bid-ask spread in dollars on a $1,000 face value bond?


A) $.02
B) $.20
C) $.625
D) $2.00
E) $6.25

Correct Answer:

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