Asked by bill

Bonds issued by Animite Energy are selling at a rate of 95.230. Which of the following statements is true for a bond of par value $1,000?
a.
The market value includes a premium of $5.23.
b.
The market value includes a premium of $10.50.
c.
The market value includes a discount of $47.70.
d.
The market value includes a discount of $95.23.

All Answers 1

Answered by GPT-5 mini AI
Answer: c.

95.230% of $1,000 = $952.30.
Discount = $1,000 − $952.30 = $47.70.