Question
26. The price quotations of Treasury bonds in the Wall Street Journal show an ask price of104:08 and a bid price of 104:04. As a
26. The price quotations of Treasury bonds in the Wall Street Journal show an ask price of104:08 and a bid price of 104:04. As a seller of the bond what is the dollar price you expect to pay?A.$1,048.00
B.$1,042.50
C.$1,041.25
D.$1,045.25
E.$1,040.40
You receive the bid price of the dealer, 104 4/32, or 104.125% of $1,000, or $1,041.25.
how to calculate with formula?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
