An ask price of 98.73 means that you can _ a $1,000 face value bond for _.

A) Buy; $98.73
B) Buy; $987.30
C) Sell; $98.73
D) Sell; $987.30
E) Swap; $98.73

Question

An ask price of 98.73 means that you can _____ a $1,000 face value bond for _____.A)  Buy; $98.73B)  Buy; $987.30C)  Sell; $98.73D)  Sell; $987.30E)  Swap; $98.73

Daejah Blakely · Accepted Answer

Final Answer : B, Explanation :  The ask price is the price at which you can buy a security. In the context of bonds, prices are quoted as a percentage of the face value. Therefore, an ask price of 98.73 means you can buy a $1,000 face value bond for 98.73% of its face value, which is $987.30.

An ask price of 98.73 means that you can _ a $1,000 face value bond for _.

A) Buy; $98.73
B) Buy; $987.30
C) Sell; $98.73
D) Sell; $987.30
E) Swap; $98.73

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