Asked by Diego Fuentes on Apr 29, 2024
Verified
The price quotations of Treasury bonds in the Wall Street Journal show a bid price of 104.5313 and an ask price of 104.5489. If you sell a Treasury bond, you expect to receive ________.
A) $ 1,000.00
B) $ 1,045.00
C) $ 1,045.31
D) $ 1,045.48
Treasury Bonds
Long-term government securities issued by the U.S. Department of the Treasury, with a maturity period typically extending beyond ten years, offering periodic interest payments and repaying the principal at maturity.
Bid Price
The maximum price that a buyer is willing to pay for a security.
Ask Price
The price at which a seller is willing to sell a security or asset.
- Understand the fundamental principles of interest rates, the process for calculating yields, and how inflation influences investment values.
Verified Answer
AP
Learning Objectives
- Understand the fundamental principles of interest rates, the process for calculating yields, and how inflation influences investment values.