A bond is currently quoted at 98.25 - If you chose to buy this bond today at the currently quoted price, how much would you pay for the bond (Par value of the bond is 51,000)?

O 5982.50
O $9,825.00
O $1,000.00
O $98.25
O Not possible to compute with the data provided



Answer :

Step-by-step explanation:

To determine how much you would pay for the bond at the quoted price of 98.25, you need to calculate it as a percentage of the par value:

[tex]\[ \text{Price Paid} = \text{Quoted Price} \times \text{Par Value} \][/tex]

Given:

- Quoted Price = 98.25% (as a decimal, this is 0.9825)

- Par Value = $51,000

Now, calculate:

[tex]\[ \text{Price Paid} = 0.9825 \times 51,000 \][/tex]

[tex]\[ \text{Price Paid} = 50,182.50 \][/tex]

Therefore, the amount you would pay for the bond at the quoted price of 98.25 is $50,182.50.

So, none of the provided options exactly matches the calculated amount. The closest approximation would be around $50,182.50, which isn't listed among the options given.

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