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QuizMultiple Choice

Buying Bonds

Question 1 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Escambia County $1,000 bonds are selling at 109.443. What is the market price of one such bond?

Answer
A
$1,109.44
B
$1,000.00
C
$109.44
D
$1,094.43

Explanation

A bond quoted at 109.443 sells for 109.443% of its $1,000 face value. Calculate $1,000 × 1.09443 = $1,094.43. Therefore, the market price is $1,094.43, choice d.

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