A bond with a face value of $20,000,000 and a quoted price of 102¼ has a selling price of
A) $20,450,000
B) $20,045,000
C) $20,000,000
D) $19,550,000

Question

Quizplus · Accepted Answer

The selling price of a bond is calculated by multiplying the face value by the quoted price. In this case, the face value is $20,000,000 and the quoted price is 102¼, which is equivalent to 102.25. Therefore, the selling price is $20,000,000 x 102.25 = $20,450,000.

A Bond with a Face Value of $20,000,000 and a Quoted