Thank you so much for your help! I passed! Definitely helped simplify some of the material and put my mind at ease on what was actually going to be on the exam vs. what knopman liked to test a lot, thanks again!
I'm confused isn't the correct answer B not D? even the explanation says D doesn't it or am I missing something? Question #12 of 50 Question ID: 1180373 An investor owns a long-term U.S. Treasury bond with a 5% coupon and 15 years to maturity. The client wishes to sell and receives a quote from a dealer of 104.22. This number represents A)the premium B)the bid price C)the yield to maturity D)the offer price - Explanation If you are looking to sell, the dealer will pay you his bid price. Had the question said the client wanted to buy, then the quote would have been the offer (ask) price. What does the 5% coupon and the 15 years to maturity have to do with the question? NOTHING. And, knowing that treasuries are quoted in 32nds has nothing to do with it either. And, one more thing. The price quote is above 100, so it is at a premium, BUT the better answer is bid price because the question is referring to the quote.
Thank you yes it isn't from this video I couldn't find the one that matched up to the Kaplan question. That's part of the reasson I put the question of in the beginning
sell stops makes sense now. Thanks for the examples, that really helped.
Glad you now intellectual own it.
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Thank you so much for your help! I passed! Definitely helped simplify some of the material and put my mind at ease on what was actually going to be on the exam vs. what knopman liked to test a lot, thanks again!
Kudos!!!
I'm confused isn't the correct answer B not D? even the explanation says D doesn't it or am I missing something?
Question #12 of 50
Question ID: 1180373
An investor owns a long-term U.S. Treasury bond with a 5% coupon and 15 years to maturity. The client wishes to sell and receives a quote from a dealer of 104.22. This number represents
A)the premium
B)the bid price
C)the yield to maturity
D)the offer price
- Explanation
If you are looking to sell, the dealer will pay you his bid price. Had the question said the client wanted to buy, then the quote would have been the offer (ask) price. What does the 5% coupon and the 15 years to maturity have to do with the question? NOTHING. And, knowing that treasuries are quoted in 32nds has nothing to do with it either. And, one more thing. The price quote is above 100, so it is at a premium, BUT the better answer is bid price because the question is referring to the quote.
Where is this question coming from? It is not in this video. Is it a Kaplan question? The rationale is indeed for the B choice.
Thank you yes it isn't from this video I couldn't find the one that matched up to the Kaplan question. That's part of the reasson I put the question of in the beginning