Dealer market in which dealers hold inventory in bonds

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1. You recall that bonds are traded in dealer market in which dealers hold inventory in bonds. You want to sell a bond to a dealer. Which one of the following prices will you receive?

a. call price

b. auction price

c. bid price

d. ask price

e. bid-ask price

2. A bond has a coupon of 6.3%, payable semi-annually, matures in 9 years, and is currently priced at $1082.50. What is this bond's yield to maturity?

a. 2.5717%

b. 3.6546%

c. 5.1433%

d. 6.121%

Reference no: EM131871388

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