There is customarily a small spread between bid and asked prices of Treasury notes and bonds, because:
A)they are traded at a discount from par.
B)there is competition from other markets.
C)the market for Treasury issues is liquid.
D)there are not many government securities dealers.

Question

Quizplus · Accepted Answer

The market for Treasury issues is considered to be very liquid, with a large number of buyers and sellers actively participating. This high level of activity and competition typically results in a small spread between bid and asked prices.

There Is Customarily a Small Spread Between Bid and Asked