A $1,000 face value bond has a bid quote of $101.254 and a bid-ask spread of 0.241.

Fantastic news! We've Found the answer you've been seeking!

Question:

A $1,000 face value bond has a bid quote of $101.254 and a bid-ask spread of 0.241. What price must you pay to purchase this bond?

Related Book For answer-question

Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

See More Books

Posted Date: Feb 13, 2024 05:46 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
You invest in a $23,245.00 in a 272 day CD. What interest would you earn? 3. You are going to purchase a 91 day T-Bill. You have the following information: BID ASK 7.23% 6.85% a. What price would you...
Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
A climate model predicts that Earth's ECS is 2.0 K. If the radiative forcing from a doubling of CO2 is 3.7 Wm 2, and the Planck feedback simulated by the model is -3.4 Wm 2K what is the sum of all...
Conduct a basic SWOT analysis of an organization or department to which you belong, how do you see these factors affecting the direction of HR?
A cylindrical conductor of radius a has a hole of radius b bored parallel to, and centered a distance d from, the cylinder axis (d + b < a). The current density is uniform throughout the remaining...
Senathirajah and Purtill share profits in a proportion of 60:40. Senathirajah is entitled to a salary allowance of $$120$000 p.a., and Purtill is entitled to $$110000$ p.a. Capitals are fixed at...
Will the Kindle revolutionize the book industry? Why or why not?
29. If A 21+j+k and B=1+2j+2k, find the magnitude of component of (A+B) along B: (1) 4 unit (2) 5 unit (3) 6 unit (4) 7 unit 30. Which of the following group of forces cannot produce the resultant of...
Suppose we have the following real estate speculation scenario for a 1 year investment: Purchase price of house: $150,000 Equity: $120,000 Debt: $30,000 @10% interest Interest Payments: $3,000 What...
Roman and Tej decide to have a friendly race with their race cars on a straight road; Roman's car can accelerate at 20 meters per second per second and can achieve a maximum speed of 60 meters per...
5. A cone of a vertex angle 2a = 60 rolls without slippage over the plane with constant precession velocity (ang. velocity w = 2 rad/s). In time t=0 point P starts motion along the slant from the...
1. A 2-dimensional (x-y), steady, incompressible flow is described by Cartesian velocity components u, v: u = x and v = -y. o Write a concise, technically precise, verbal description of how the...
All these thermodynamic calculations can make you very hungry, right? Why don t you prepare yourself a little bit of yummy ramen...? As you stand on your Q = 2 kW stove watching the water boil at tc...
1. Sketch the following paths on both p-v diagram and T-s diagram by assuming ideal gas. Path 1-2: isobaric process with decreasing volume Path 2-3: constant volume process with increasing pressure...
Couette flow is characterized by ( A ) Steady, incompressible, laminar flow through a straight circular pipe ( B ) Fully developed turbulent flow through a straight circular pipe ( C ) Steady,...
In Hollywood, most nightclubs hire "promoters", or people who walk around near the nightclub and try to convince passersby to enter the club. One of the nightclub owners asked a marketing consultant...
Represent each of the following combination of units in the correct SI form using an appropriate prefix: (a) m/ms, (b) k m, (c) k s /mg, and (d) k m N.
How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?
Considering the discussion of market efficiency from Chapter 6, discuss whether you should be willing to pay high fees to mutual fund investment managers.
Consider a shared-appreciation mortgage (SAM) on a $250,000 mortgage with yearly payments. Current market mortgage rates are high, running at 13%, of which 10% is annual inflation. Under the terms of...
If you look at the light spectrum reflected from the surface of a DVD compared to the spectrum reflected from the surface of a CD, youll see that the rainbows from the DVD are more spread out, with...
DVDs and Blu-ray disks store information in patterns that are read by laser light. The shorter the wavelength of the light, the closer the data tracks can be placed on the disk. A Blu-ray player uses...
Increasing the density of a material tends to increase the index of refraction. Does light travel faster in seawater or in fresh water?

A $1,000 face value bond has a bid quote of $101.254 and a bid-ask spread of 0.241.

Question:

Expert Answer:

You would need to pay 101495 to purchase the bond H... View the full answer

Financial Markets And Institutions

Students also viewed these finance questions