The Size of the Bond Dealer's Spread Is Mainly a Function

question 6

Multiple Choice

The size of the bond dealer's spread is mainly a function of the:

• A) purchase price of the bond.
• B) current yield.
• C) liquidity of the bond market.
• D) face value of the bond.

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Definitions:

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as machinery, buildings, and land.

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its resources.

Sales Level

The total volume or value of all products or services sold by a company within a specific period.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted to cash within a year.