For government bonds, the price that a dealer is willing to pay for a government security is called the:

Question

Quizplus · Accepted Answer

The price that a dealer is willing to pay for a government security is called the bid price. This is the price at which the dealer is willing to buy the bond from an investor. The asked price (B) is the price at which the dealer is willing to sell the bond to an investor. The clean price (D) is the price of a bond excluding any accrued interest or other factors such as fees or taxes. The dirty price (A) is the price of a bond including any accrued interest or other factors such as fees or taxes. Therefore, the bid price is the most appropriate choice for this question.

For Government Bonds, the Price That a Dealer Is Willing