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:

Bloomingdale's

Bloomingdale's is a luxury department store chain in the United States known for offering high-end fashion apparel, accessories, and home goods.

Macy's

An American department store chain known for its wide range of consumer goods, including clothes, accessories, and home products.

Corporate Chain

A series of connected businesses that operate under a parent company or brand.

Form Of Ownership

The legal and structural configuration of an organization, determining aspects like liability, taxation, and decision-making processes (e.g., sole proprietorship, partnership, corporation).