A Bond Has an Ask Quote of 99

question 33

Multiple Choice

A bond has an ask quote of 99.5625 and a bid quote of 99.5475.How much will the bond dealer make on the purchase and resale of a $100,000 bond?

• A) $150
• B) $1,500
• C) $15
• D) $1.50

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Definitions:

Financial Strength

A measure of a company’s ability to meet its financial commitments, indicating its overall financial stability.

International Financial Reporting Standard

A set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.

Negative Net Cash Flow

Negative net cash flow occurs when a company's cash outflows exceed its cash inflows during a given period, indicating more cash is being spent than generated.

Free Cash Flow

Free cash flow is the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.