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Anonymous Anonymous
  • 03-05-2016
  • Mathematics
Answered

A bond quoted at \(93 \frac{1}{8}\) is equal to ____ per $1000.00 of the face amount.


A.)$9.32


B.)$9,312.50


C.)$931.25


D.)$93.16

Verified Answer :

meerkat18
meerkat18 meerkat18
  • 05-05-2016

Given:
93 1/8
1,000

1,000 is the par value of a bond. It should be equal to 100%.If it is quoted at a lesser rate, it means that the bond is sold at less than the par value.

93 1/8 is actually 93.125%

1,000 x 93.125% = 931.25 Choice C.

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