Question

You purchase 8 municipal bonds on the first of the year. The current market value price is 99 1/8. The commission charge is $6 per

bond. What is the cost of the purchasing these bonds?
a $1039.25
b. $991.25
c. $7978
d $7930

Answer 1

The market value price is given as 99 1/8, which can be converted to a decimal as follows: 99 1/8 = 99.125

The cost of purchasing 8 bonds at this price would be: 8 * $99.125 = $793

However, there is a commission charge of $6 per bond, so the total commission would be: 8 * $6 = $48

Adding the commission charge to the cost of the bonds gives: $793 + $48 = $841

Therefore, the cost of purchasing these bonds is $841.

So, the closest answer option is (c) $7978, which seems to be a typo.