Question

Mark Shaughnessy purchased a $4,250 bond at 91.50 that pays 7% interest. What was the cost of the bond?

Answer 1

Answer:

The answer is : $3,888.75

Step-by-step explanation:

Given is :    

Mark Shaughnessy purchased a $4,250 bond at 91.50 that pays 7% interest.

Cost of the bond = $4250\times0.915=3888.75$

So, the cost of the bond is $3888.75.

Answer 2

Bond Cost=Face Value×Percent
Bond cost=4,250×0.915=3,888.75