Which of the following correctly describe U.S.Treasury bonds?
I.have a "tick" size of 1/32
II.highly liquid
III.quoted in dollars and cents
IV.quoted at the dirty price

Question

Quizplus · Accepted Answer

U.S. Treasury bonds have a "tick" size of 1/32, making choice I correct. They are also highly liquid, which makes choice II correct. They are not quoted in dollars and cents (III is incorrect) but in percent of par value in thirty-seconds of a percent. They are quoted at the clean price, not the dirty price, which includes accrued interest (IV is incorrect).

Which of the Following Correctly Describe U.S.Treasury Bonds