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