The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125. As a seller of the bond, what is the dollar price you expect to receive?
A) $1,048.00
B) $1,042.50
C) $1,041.25
D) $1,041.75
E) $1,040.40

Question

Quizplus · Accepted Answer

The seller of the bond would expect to receive the bid price, which is the price buyers are willing to pay. The bid price is 104.125, which means $1,041.25 per $1,000 face value of the bond.

The Price Quotations of Treasury Bonds in the Wall Street