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leonid [27]
3 years ago
7

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

broker 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?
Business
2 answers:
Mrrafil [7]3 years ago
6 0

He should take the option one of sales commission of 3.1% on each bond. If he takes the 2nd option, he is required to pay 24$ per bond. But if he takes the ist option, he is required to pay 15.5$ per bond. 88.754 is the market rate. Total investment is of 500$. Multiply the commission rate with the amount and you get 15.5 $. There is a difference of 8.5 dollars between the two options.

Burka [1]3 years ago
5 0

the answer to this is d


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