On a given day a bond broker maintains a bid of $1,006.00 for a bond and...
On a given day a bond broker maintains a bid of $1,006.00 for a bond and an ask price of $1,009.00. The broker made 18 trades that totaled 900 bonds traded that day. What was the broker's gross trading profit for this security?
Homework Answers
gross trading profit = (ask price - bid price) * number of bonds
gross trading profit = ($1009.00 - $1006.00) * 90 = $270
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