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Unformatted text preview: Asked price the price a dealer is willing to take for a security Bid-ask spread difference between the bid price and the asked price (represents the dealers profit) Treasury prices are quoted in 32nds If you buy a bond between the coupon payment dates, the price you pay is usually more than the price you are quoted because accrued interest is deducted to arrive at the quoted price Clean price price of a bond net of accrued interest (this is the price that is typically quoted) Dirty (full or invoice) price price of a bond including accrued interest...
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This note was uploaded on 12/06/2011 for the course FIN 3134 taught by Professor Ddklock during the Fall '08 term at Virginia Tech.
- Fall '08