Question

The 7.55 percent 07 bonds of StatusQuo, Inc. currently yield 11 percent. The bonds traded at a low of 71.25 and closed today at 71.625 up 0.75. The closing price yesterday was?

A. 71.125
B. 70.875
C. 71.875
D. 71.500

Answer 1

To find the closing price of StatusQuo, Inc. bonds for the previous day, we subtract the increase from today's closing price, resulting in a price of 70.875 for yesterday.

Step-by-step explanation:

The question asks for the closing price of StatusQuo, Inc. bonds yesterday given that they closed today at 71.625, which is up 0.75 from yesterday. To find the closing price for yesterday, we simply subtract 0.75 from today's closing price.

71.625 (today's closing price) - 0.75 (increase) = 70.875 (yesterday's closing price).

Therefore, the closing price of the StatusQuo, Inc. bonds yesterday was 70.875.