Asked by
Kelsey Bryant
on Nov 14, 2024
Verified
A bond with a face value of $100,000 and a quoted price of 102.25 would have a selling price of
A) $ 97,800.
B) $100,000.
C) $102,250.
D) $122,250.
Quoted Price
The existing rate at which an asset or service can be sold or purchased.
Selling Price
The amount of money for which a product or service is sold to customers.
Face Value
The original cost of a bond or the principal balance to be paid back at maturity, excluding interest.
- Acknowledge the techniques and foundations underlying the valuation of bonds in the market, considering how changes in interest rates affect the prices of bonds.
Verified Answer
SA
Learning Objectives
- Acknowledge the techniques and foundations underlying the valuation of bonds in the market, considering how changes in interest rates affect the prices of bonds.