Question

Corporate bonds from Agram Imports are selling at 80.191, bonds from Rayje Clothiers are selling at 115.550, and bonds from Orlon Jewelry are selling at 91.931. If each of these bonds has a par value of $1,000, and Maud wishes to purchase three bonds from Agram Imports, two bonds from Rayje Clothiers, and one bond from Orlon Jewelry, how much can she expect to pay in total?
a.
$6,470.88
b.
$8,630.16
c.
$5,636.04
d.
$6,000.00

Answer 1

Bond prices are percent of par, so convert to dollar amounts:
- Agram: 80.191% of $1,000 = $801.91 each → 3 × $801.91 = $2,405.73
- Rayje: 115.550% of $1,000 = $1,155.50 each → 2 × $1,155.50 = $2,311.00
- Orlon: 91.931% of $1,000 = $919.31 → 1 × $919.31 = $919.31

Total = $2,405.73 + $2,311.00 + $919.31 = $5,636.04

Answer: c. $5,636.04