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.

Question

Quizplus · Accepted Answer

To find the selling price of a bond, you need to multiply the face value by the quoted price as a percentage and then divide by 100.

Selling price = (face value x quoted price%) / 100

In this case, the face value is $200,000 and the quoted price is 102¼, which can be written as 102.25%.

Selling price = (200,000 x 102.25) / 100 = $204,500

Therefore, the correct answer is (D) $204,500.

A Bond with a Face Value of $200,000 and a Quoted