Question

Bonds from the U.S. Treasury are selling at 102.293, bonds from Alachua County are selling at 85.681, and bonds from the city of Northfield are selling at 94.442. How much will it cost Lana if she wants to purchase one bond with a par value of $1,000 from each of these sources?
a.
$3,000.00
b.
$3,282.41
c.
$2,824.16
d.
$328.24

Answer 1

Price is percent of par, so for $1,000 each:
Treasury: 102.293% → $1,022.93
Alachua County: 85.681% → $856.81
Northfield: 94.442% → $944.42
Total = $1,022.93 + $856.81 + $944.42 = $2,824.16

Answer: c.