Bonds from the city of Denver with a face value of $1,000 each are selling at 110.611. If Sean wishes to purchase three such bon

Question

Dmitriy789 [7]

3 years ago

9

Bonds from the city of Denver with a face value of $1,000 each are selling at 110.611. If Sean wishes to purchase three such bon

ds, how much can he expect to pay?

Mathematics

1 answer:

Andrej [43] · Answer 1 · 2022-03-27T00:56:51+03:00

A bond quote (100.611) is the last price bond is traded at. A bond quote is the percentage of a face value.
In this case, the bond quote is 110.611 which means that bond is traded at 110.611% of its face value.
If Sean wants to buy 3 bonds he needs to pay:
3*1000*110.611/100=$<span>3318.33</span>