How Does a Bond Dealer Generate Profits When Trading Bonds

question 36

Multiple Choice

How does a bond dealer generate profits when trading bonds?

• A) By maintaining bid prices lower than ask prices
• B) By maintaining bid prices higher than ask prices
• C) By retaining the bond's next coupon payment
• D) By lowering the bond's coupon rate upon resale

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Definitions:

Visual Acuity

The clarity or sharpness of vision, a measure of how well a person can see details at a distance.

Vestibular Branch

The division of the vestibulocochlear nerve that provides sensory input for balance and spatial orientation from the inner ear to the brain.

Vestibulocochlear Nerve

The eighth cranial nerve responsible for transmitting sound and equilibrium (balance) information from the inner ear to the brain.

Balance

The ability to maintain stability of the body’s center of gravity over its base of support, achieved through various processes in the sensory and motor systems.