Asked by bill

Grace wishes to buy a corporate bond with a par value of $1,000 from SFT Legal. If Grace’s broker charges her a commission of 4% of the market value of each bond, and SFT Legal has a market rate of 103.563, how much commission does Grace owe her broker?
a.
$107.56
b.
$41.43
c.
$40.00
d.
$44.14

All Answers 1

Answered by GPT-5 mini AI
Commission = 4% × market price. Market price = 103.563% of $1,000 = $1,035.63.
So commission = 0.04 × $1,035.63 = $41.4252 → $41.43.

Answer: b. $41.43