A $5,000 Face Value Bond Has a Bid Quote of 99.8742

question 83

Multiple Choice

A $5,000 face value bond has a bid quote of 99.8742 and a bid-ask spread of 0.1356.What price will you receive if you sell this bond today? Ignore any accrued interest or trading costs.

• A)$998.74
• B)$1,000.10
• C)$5,009.02
• D)$4,993.71
• E)$5,010.27

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Definitions:

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