Suppose that a one-year treasury bond has a face value of $110,000.00 and is currently selling in the bond market for $100,000.00. this bond is safe, because the u. s. treasury never defaults on its promises. for the sake of this question (and to make life easier for all of us), assume that the face value and the price of this bond will remain the same throughout the story. the treasury issues another one-year bond with a face value of $174,900.00 and a starting price of $170,000. however, nobody buys this bond. people believe it is too expensive. (why you think they believe this is expensive? ) consequently, the price of this bond in the bond market drops to dollars.

You would like to purchase one class a share of berkshire hathaway through your scottrade brokerage account. scottrade charges a ​$6 commission for online trades. you log into your​ account, check the​ real-time quotes for berkshire hathaway​ (you see a bid price of ​$262 comma 900 and an ask price of ​$263 comma 730​) and submit your order. a. what is the current​ bid/ask spread for berkshire hathaway class a​ shares? b. if scottrade routes your buy order to the​ nyse, where berkshire hathaway is​ listed, what's the potential minimum your total transaction costs will​ be? c.​ if, instead, scottrade routes your buy order to​ nasdaq, where berkshire hathaway is not​ listed, what's the potential maximum your total transaction costs will​ be? d. regardless of how your trade is​ executed, based on the​ bid/ask spread, what is the market value of your​ trade? a. the current​ bid/ask spread for berkshire hathaway class a shares is ​$ nothing. ​(round to the nearest​ dollar.)