The bid quote on a corporate bond is 212 the ask is 215 you


The bid quote on a corporate bond is $212; the ask is $215. You expect this bond to return its promised 15% per annum for sure. In contrast, T-bonds offer only 6% per annum but have no spread. If you have to liquidate your position in 1 month, what would a $1 million investment be worth in either instrument? Which instrument should you purchase?

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Financial Management: The bid quote on a corporate bond is 212 the ask is 215 you
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