Question: A. Explain the difference between a bid price and an asked price and also explain why the prices are different. Maturity: 8/15/2019, Coupon: 8.250, Bid:

A. Explain the difference between a bid price and an asked price and also explain why the prices are different.

Maturity: 8/15/2019, Coupon: 8.250, Bid: 142:10, Asked: 142:15, Chg: +52, Asked Yield: 3.393.

Maturity: 2/15/2020, Coupon: 8.620, Bid: 146:15, Asked: 146:19, Chg: +54, Asked Yield: 3.473.

Do the following for the 2020 bond:

B. Calculate the actual (in dollars) bid and ask prices for this bond.

C. Calculate the bid ask spread.

D. What was the price of the bond from the previous day?

E. How much is the coupon payments of this bond?

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