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oksian1 [2.3K]
2 years ago
13

Pierce wishes to purchase a municipal bond with a par value of $500 from Arapahoe County, and he is trying to decide which broke

r he should employ to purchase the bond. Broker A charges a 3.1% commission on the market value of each bond sold. Broker B charges a flat $24 for each bond sold. If the bond has a market rate of 88.754, which broker will give Pierce the better deal, and by how much?
Mathematics
2 answers:
mars1129 [50]2 years ago
8 0
D - Broker A’s commission will be $10.24 less than Broker B’s.<span>
</span>
Leni [432]2 years ago
3 0

Answer:

Since the given problem statement and data is

Manicipal bond with par value=$500

commission rate =3.1%

charges of broker B=$24

bond market rate=$88.754

hence from the given data  Broker A charges a 3.1% commission on the market value of each bond sold is a better deal.

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