Which of the following best describes the Bid-Ask spread in the financial markets?   The profit margin a trader expects to make on a sale.   The difference between the interest rates of two different currencies.   The difference between the price at which one can buy a security (ask) and the price at which one can sell it (bid).   The amount by which a bond's yield increases due to an increase in risk.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.6: Perpetuities
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Which of the following best describes the Bid-Ask spread in the financial markets?

 
  1. The profit margin a trader expects to make on a sale.

     
  2. The difference between the interest rates of two different currencies.

     
  3. The difference between the price at which one can buy a security (ask) and the price at which one can sell it (bid).

     
  4. The amount by which a bond's yield increases due to an increase in risk.

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