Question

Find the cost of twelve $1,000 bonds at a quotation of 84.50

Answer 1

What we have so far:*12 bonds*1 bond = $1,000*Quotation of 84.50% per bond ($845 each).
What to find:*QT - Quotation Total. QT = (12 x $1,000) x Quotation*TC - Total Cost. TC = (12 x $1,000) + QT
Solution:Finding QT:QT = (12 x $1,000) x QuotationQT = (12 x $1,000) x 84.50%QT = $12,000 x 84.50%QT = $10,140
Finding TC:TC = (12 x $1,000) + QTTC = (12 x $1,000) + $10,140TC = $12,000 + $10,140TC = $22,140 <--- What we are looking for.
Therefore, the total cost of twelve $1,000 bonds at a quotation of 84.50% is: $22,140.