Wednesday, January 11, 2012

bond bid/ask priceA Treasury bond’s bid price will be lower than the ask price. TRUE OR FALSE?

A Treasury bond’s bid price will be lower than the ask price. TRUE OR FALSE????
True. Bid price is thbond bid/ask pricee price at which the buyer wants to buy an asset. Ask price is the price required by the seller to sbond bid/ask priceell the asset. If bid price is greater or equal to ask price, it results into a transaction instantlbond bid/ask pricey.

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