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A Bond Is Listed in a Newspaper at a Bid

Question 54

Multiple Choice

A bond is listed in a newspaper at a bid of 105.4844.This quote should be interpreted to mean:


A) the bond will pay semiannual interest payments of $105.4844 per $1,000 of face value.
B) you can sell that bond at a price equal to 105.4844 percent of face value.
C) the bond will pay annual interest payments of $105.4844 per $1,000 of face value.
D) you can buy that bond at a price equal to 105.4844 percent of face value.
E) the bond dealer is willing to sell that bond for a price equal to 105.4844 percent of par.

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