Asked by Cierra Clark on May 02, 2024
Verified
An investor pays $104,280 for a treasury bond. The price mostly listed in the Wall Street Journal show as the ask price will be _________.
A) 98.20
B) 100.00
C) 104.28
D) 106.33
E) 108.00
Treasury Bond
A long-term, fixed-interest U.S. government debt security with a maturity of more than ten years.
Ask Price
The lowest price a seller is willing to accept for a security.
- Understand the principles of bond valuation and its market pricing.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
The price of a treasury bond in the Wall Street Journal is typically shown as a percentage of the bond's face value, which is usually $100,000. Since the investor pays $104,280 for the bond, this means the ask price is 104.28% of the face value.
Learning Objectives
- Understand the principles of bond valuation and its market pricing.