Multiple choice question
A bond with a face value of $200,000 and a quoted price of 102⅛ has a selling price of
A | $240,225 |
B | $204,025 |
C | $200,225 |
D | $204,250 |
1/8 = 0.125
Therefore quote price corresponds to 102.125% (102+0.125).
Quote price of bonds take the past value of the bond as it's base. So when a bond is said to have a quote price of 102.125%, the selling price can be calculated by multiplying the quote price percentage with the past value of the bond, to be $204025 (200000*102.125%).
Option B $204025 is the correct answer.
Multiple choice question A bond with a face value of $200,000 and a quoted price of...
1. A bond with a face value of $200,000 and a quoted price of 102¼ has a selling price of a. $240,450. b. $204,050. c. $200,450. d. $204,500. 2. If the market interest rate is greater than the contractual interest rate, bonds will sell a. at a premium. b. at face value. c. at a discount. d. only after the stated interest rate is increased. 3. If Vickers Company issues 4,000 shares of $5 par value common stock...
A bond with a face value of $100,000 and a quoted price of 99 has a selling price of: Select one: a. $100,000 b. None of the above c. $199,000 d. $101,000 e. $99,000
is this the right answer? Question 6 5 pts A bond with a face value of $200,000 and a quoted price of 102 has a selling price of $200,450 $204,500 $204,000 $204,050
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