10
QuizMultiple Choice

Buying Bonds

Question 10 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

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?

Answer
A
$3,000.00
B
$3,282.41
C
$2,824.16
D
$328.24

Explanation

Bond prices are quoted as a percentage of the $1,000 par value. The three bonds cost $1,022.93, $856.81, and $944.42, respectively. Adding them gives $1,022.93 + $856.81 + $944.42 = $2,824.16, so the correct choice is $2,824.16.

AI-written and checked against the verified answer.

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