Final answer:
The dollar value of a U.S. Government bond selling at 97.08 in the market is $970.80, which is found by multiplying 97.08% by the bond's face value of $1,000.
Step-by-step explanation:
A U.S. Government bond is selling in the market at 97.08, which means it is selling at 97.08% of its face value. To calculate the dollar value of this bond, you would multiply the percentage (expressed as a decimal) by the face value of the bond. Most government bonds have a face value of $1,000. Therefore, the calculation would be 0.9708 × $1,000, which equals $970.80.
So, the correct answer to the question 'A U.S. Government bond is selling in the market at 97.08. The dollar value of this bond is:' would be b. $970.80.