The Minimum Tick Size, or Spread Between Prices in the Treasury

question 30

Multiple Choice

The minimum tick size, or spread between prices in the Treasury bond market, is

• A) 1/8 of a point.
• B) 1/16 of a point.
• C) 1/32 of a point.
• D) 1/128 of a point.

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Definitions:

Realized Profits

The gains earned and received from the sale of assets or investments.

Tax Rate

The rate at which a person or company is taxed by the state.

Unrealized

Referring to profits or losses that have occurred on paper due to changes in the value of assets or investments but have not been actualized through a sale or transaction.

Intercompany Profits

Earnings generated from transactions between divisions or subsidiaries within the same corporation, which may be eliminated in consolidated financial statements.