Asked by Nhlanhlo Nhlekza on Jul 05, 2024
Verified
The price a dealer is willing to accept for selling a security to an investor is called the:
A) Equilibrium price.
B) Auction price.
C) Bid price.
D) Ask price.
E) Bid-ask spread.
Ask Price
The lowest price a seller is willing to accept for a security or commodity.
Equilibrium Price
The price point where the amount of goods that are offered for sale matches the amount of goods that consumers are willing to buy.
Auction Price
The final price at which an item is sold during an auction, determined by competitive bidding.
- Describe the relationship between interest rates, coupon rates, and bond prices.
Verified Answer
SL
Smarika LamsalJul 07, 2024
Final Answer :
D
Explanation :
The price a dealer is willing to accept for selling a security to an investor is known as the "ask price." This is the price at which you can buy a security from a dealer.
Learning Objectives
- Describe the relationship between interest rates, coupon rates, and bond prices.