Ch. 7.5 - Bond Markets
what are some of the reasons why the bond market is so big
- many corporations have multiple bond issues outstanding - federal government borrowing activity in the bond market is enormous - various state and local governments also participate in the bond market
these features are for what type of market? Has no designated physical location dealers are connected electronically
OTC market for bonds
what is the largest security market in the world in terms of trading volume
US treasuries market
if you were to buy a price you would do so at the
asked price
the price at which a dealer is willing to buy securities
bid price
how has TRACE improved transparency in the corporate bond market?
corporate bond dealers are now required to report trade information through TRACE
the bid ask spread represents the
dealer's profits
t/f the real estate market is more transparent than the stock market
false
why is the bond market less transparent than the stock market?
many bond transactions are negotiated privately
what two prices can be fond in the wall street journal's daily treasury bond listing
the bid and asked price