A bond with a face value of $1,000 has a current price quote of 89.00.This bond is selling for
A)$1090.00.
B)$1040.00.
C)$990.00.
D)$890.00.

Name: A bond with a face value of $1,000 has a current price quote of 89.00.This bond is selling for A)$1090.00. B)$1040.00. C)$990.00. D)$890.00.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The bond is selling at 89% of its face value, which is calculated as 0.89 x $1,000 = $890. Therefore, the best choice is D, which represents a price of $890.

A Bond with a Face Value of $1,000 Has a Current