A debenture maturing in 2019 is bid at 77-7/8 and asked at 78-3/4. Which of the following is TRUE of the spread?
A) The spread represents 3/4 per bond equivalent to $75.
B) The spread represents 7/8 per bond equivalent to $8.75.
C) The spread represents 7/8 per bond equivalent to $87.50.
D) The spread represents 3/4 per bond equivalent to $0.75.
Answer: B) The spread represents 7/8 per bond equivalent to $8.75.