The answer is A that’s the answer
Answer:
4
Step-by-step explanation:
Based on the par value of the bond and the percentage it was issued at, the cost of the bond is $852.50.
<h3>What is the cost of the bond?</h3>
The current cost of the bond is the present value of the bond's cashflows and its par value.
This is taken into account when the bond is issued at a certain percentage which in this case is 85 ¹/₄%.
The cost of the bond is:
= 1,000 x 85 ¹/₄%
= $852.50
Find out more on the cost of bonds at brainly.com/question/15567868.
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A general rule of thumb is that if numbers are involved it's quantitative and if characteristics are involved its qualitative, so in this case it'd be quantitative.