Question
Calculate the closing price of a bond that has a face value of $1,000 and is closing at 101 7/8% of the face value.
A. $1,001.78
B. $1,000.78
C. $1,018.75
D. $1,000.75
A. $1,001.78
B. $1,000.78
C. $1,018.75
D. $1,000.75
Answers
PsyDAG
100% = original amount. This is 1 7/8% more. What is 1 7/8% of 1000?