Question
The price at which an investor can purchase in the bond market is called the _ Marked out of 1.00 p Flag question a. coupon b. call c. bid d. face e. asked
Ask by Harmon Deleon. in the United States
Feb 26,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The price an investor can buy a bond for in the market is called the "bid" price. So, the correct answer is c. bid.
Solution
The price at which an investor can purchase a bond in the bond market is called the "bid" price.
Therefore, the correct answer is:
c. bid
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Simplify this solution The Deep Dive
The price an investor pays to purchase a bond in the market is known as the "asked" price, which reflects the minimum price a seller is willing to accept. This value is crucial for investors as it helps them understand the market dynamics and negotiate better during transactions. In the bond market, an investor must also be aware of the "bid" price, which is the maximum amount a buyer is prepared to pay. The difference between the asked and bid price is called the spread, and it can indicate the liquidity of the bond as well as the transaction costs involved.
