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You own a 20-year semiannual T-bond with $1,000 face value. Today it is quoted at 124:23...

You own a 20-year semiannual T-bond with $1,000 face value. Today it is quoted at 124:23 bid and 128:25 ask. What is the most you can get when you sell your bond today?

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Answer #1

The bid price is what a buyer is willing to pay for a security, while the ask price is what a seller is willing to accept for the same security.

Thus, if you want to sell bond then relevant price is bid quote.

For given Bond,

Bid quote = 124.23

Face value = $1,000

Thus,

The most you can get when sell your bond today:

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