A Treasury Bond Trade Requires the Buyer and Seller Agree

question 40

Multiple Choice

A Treasury bond trade requires the buyer and seller agree on:

• A)the bond series, the quantity and the yield
• B)the bond series, the quantity and the price
• C)the quantity, the clearinghouse and the yield
• D)the quantity, the clearinghouse and the price
• E)the bond series, the coupon rate and the yield.

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Definitions:

Processing Time

The amount of time taken to complete a particular process, task, or operation.

Same Day Value

Bank makes proceeds of cheques deposited available the same day before cheques clear.

Cheques Deposited

The process of placing cheques received into a bank account to be processed and the funds credited to the account holder.

Clear

To settle a trade or transaction by exchanging financial instruments or the legal process of resolving a dispute.