Question

On March 20, 2011, a $1,000 bond had a selling price of $987.50. What was the quoted price for the bond?

987.5
0.9875
9.875
98.75
None of these choices are correct.

Answer 1

98.75%.

Explanation:

On March 20, 2011, a $1000 bond had a selling price of $987.50.

We are asked what will be the quoted price for the bond.

Now, the quoted price of a bond is the price at which the bond was last traded and it is expressed as the percentage of the original bond value.

So, in our case the quoted price will be
`(987.50)/(1000) * 100 = 98.75` %. (Answer)