The bid and ask yields for a Treasury bill were quoted by a dealer as 5.91% and 5.89%, respectively. Shouldn’t the bid yield be less than the ask yield, because the bid yield indicates how much the dealer is willing to pay and the ask yield is what the dealer is willing to sell the Treasury bill for?
Answer to relevant QuestionsAssuming a $100,000 par value, calculate the dollar price for the following Treasury coupon securities given the quoted price. (a) The quoted price for a $100,000 par value Treasury coupon security is 84.14. What is the ...Answer the below questions. (a)What is a sinking fund requirement in a bond issue? (b) “A sinking fund provision in a bond issue benefits the investor.” Do you agree with this statement? Answer the below questions pertaining to the private-placement corporate debt market. (a) Do you agree or disagree with the following statement? “Since Rule 144A became effective, all privately placed issues can be bought ...Why is a default rate not a good sole indicator of the potential performance of a portfolio of high-yield corporate bond? Answer the below questions. (a) What is the difference between refunding protection and call protection? (b) Which protection provides the investor with greater protection that the bonds will be acquired by the issuer prior ...
Post your question