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A Treasury bond is quoted as 99.6325 bid and 99.675 asked. What is the bid-ask spread...

A Treasury bond is quoted as 99.6325 bid and 99.675 asked. What is the bid-ask spread in dollars on a $4,000 face value bond?

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Answer #1

bid= 99.6325, ask= 99.675

bid-ask spread= 99.675-99.6325= 0.0425 per dollaR

so, bid ask SPREAD in dollars for face value of 4000$= 0.0425*4000= 170

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