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?
Question
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: $812.192
Step-by-step 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.