Bonds issued by Animite Energy are selling at a rate of 95. 230. Which of the following statements is true for a bond of par val
1 answer:
The statements which is true for a bond of par value $1,000 is that the market value includes a discount of $47. 70.
<h3>What is market value?</h3>Market value is the current price of a product, company, or something consorting to the stock of the market.
It is the price which is required to buy something in the current market.
Bonds issued by Animite Energy are selling at a rate of 95.230. This is the bond percentage of the Animite energy in the market. This means if someone wants to buy 95.230 of this company's bond, then he get $100.
Now for the 1000 bonds, the amount required is,
Hence, for the 1000 bonds, the amount required is 952.30. Therefore, the discount will be,
Hence, the statements which is true for a bond of par value $1,000 is that the market value includes a discount of $47. 70.
Learn more about the market value here;
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