Question

Shannon is purchasing a government bond with a par value of $800 and a price quote of 101.524%. What is the price of the bond?

Answer 1

Answer: $812.192

Explanation:

The price of the bond will be gotten by multiplying the par value by the price quote. This will be:

Price of bond = Par value × Price quote

Price of bond = $800 × 101.524%

Price of bond = $800 × 1.01524

Price of bond = $812.192

Therefore, the price of the bond is $812.192.