Question

79. Monique is buying a 30-year Treasury bond that has a bid price of 98.02 and an ask price of 98.08. What is the price Monique should expect to pay if she is buying one bond

Answer 1

Answer:

$980.80

Explanation:

Monique is buying a 30 year treasury bond

The bid price is 98.02

The ask price is 98.08

Therefore the price at which Monique will buy one bond can be calculated as follows

= 1,000 × 98.08/100

= 1,000 × 0.9808

= $980.80