Question

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 buyer of the bond, what is the dollar price you expect to pay?

Answer 1

As a buyer of the bond, you would need to pay the ask price, which in this case is $104.25.

Step-by-step explanation:

When buying a bond, the ask price is the price at which the seller is willing to sell the bond, and the bid price is the price at which the buyer is willing to buy the bond. As a buyer of the bond, you would need to pay the ask price, which in this case is $104.25. This is the dollar price you would expect to pay.