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Henry bought 6, $500 bonds at 98.580.
a) What is his total investment in the bonds? $

1 Answer

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Final answer:

Henry's total investment in the bonds is $2,957.40.

Step-by-step explanation:

To find the total investment in the bonds, we need to calculate the cost of each bond and then multiply it by the number of bonds purchased.

Cost of each bond = Face value of the bond * Price of the bond

Face value of the bond = $500

Price of the bond = 98.580% = 0.9858 (in decimal form)

Cost of each bond = $500 * 0.9858 = $492.90

Total investment = Cost of each bond * Number of bonds purchased = $492.90 * 6 = $2,957.40

Therefore, Henry's total investment in the bonds is $2,957.40.

User Damodharan R
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