For Government Bonds,the Difference Between the Bid Price and the Ask

question 2

Multiple Choice

For government bonds,the difference between the bid price and the ask price is called the:

• A)dirty price.
• B)asked price.
• C)spread.
• D)clean price.
• E)quoted price.

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Definitions:

Financial Break-even

The point at which a company's total revenues are exactly equal to its total expenses, resulting in neither profit nor loss.

Variable Costs

Charges that adjust in line with changes in production volume or output quantity.

Required Return

A rephrasing of Required Rate of Return; it's the expected return that investors demand for an investment in a particular asset, based on its risk.

Cash Break-even

The point at which a business generates enough cash flow to cover its operating expenses and capital costs.