A bond with a face value of $20,000,000 and a quoted price of 97½ has a selling price of
A) $19,410,000
B) $19,500,000
C) $20,000,000
D) $20,500,000

Name: A bond with a face value of $20,000,000 and a quoted price of 97½ has a selling price of A) $19,410,000 B) $19,500,000 C) $20,000,000 D) $20,500,000
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The quoted price of 97½ means the bond is selling for 97.5% of its face value. Therefore, the selling price is 97.5% of $20,000,000, which is $19,500,000.

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