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1 year ago

A bond with a par value of $5,000 is quoted at 105. 38. What is the dollar price of the bond?

Business

1 answer:

VikaD [51]1 year ago

7 0

If par value of bond of $5000 is quoted at 105.38, then the dollar price of the bond is $4744.73.

Given that par value of bond of $5000 is quoted at 105.38.

We are required to find the dollar value of the bond whose par value of bond of $5000 is quoted at 105.38.

Bonds are basically units of corporate debt issued by companies and securitized as tradeable assets. Par value is basically the amount of money that issuer promises to repay bondholders as the maturity date of the bond.

Dollar price of the bond=Par value/Quoted amount

Dollar price of the bond=5000/105.38%

=$4744.73

Hence if par value of bond of $5000 is quoted at 105.38, then the dollar price of the bond is $4744.73.

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Answer:

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Requirement 1.

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Requirement 2.

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Answer:

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