A bond has an ask quote of 99.5625 and a bid quote of 99.5475. How much will the bond dealer make on the purchase and resell of a $100,000 bond?
A) $150
B) $1,500
C) $15
D)$1.50

Name: A bond has an ask quote of 99.5625 and a bid quote of 99.5475. How much will the bond dealer make on the purchase and resell of a $100,000 bond? A) $150 B) $1,500 C) $15 D)$1.50
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Question

Quizplus · Accepted Answer

Dealer profit = (.995625 - .995475) × $100,000 = $15

A Bond Has an Ask Quote of 99