Asked by Felicity Ramires on Jun 07, 2024
Verified
The ask price is defined as the price:
A) At which a dealer is willing to buy.
B) At which a dealer is willing to sell.
C) Which will be paid if a bond is called?
D) At which a bond is convertible to shares of common stock.
E) At which the market rate will equal the coupon rate.
Ask Price
The lowest price at which a seller is willing to sell a financial instrument or commodity.
- Explain the significance and definition of bond pricing terms like face value, clean price, and dirty price.
Verified Answer
JP
Jaskaran PattarJun 10, 2024
Final Answer :
B
Explanation :
The ask price is the price at which a dealer (or seller) is willing to sell a security or asset. It is the lowest price a seller is willing to accept for the asset.
Learning Objectives
- Explain the significance and definition of bond pricing terms like face value, clean price, and dirty price.