7
QuizMultiple Choice

Buying Bonds

Question 7 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Corporate bonds from Agram Imports are selling at 80.191, bonds from Rayje Clothiers are selling at 115.550, and bonds from Orlon Jewelry are selling at 91.931. If each of these bonds has a par value of $1,000, and Maud wishes to purchase three bonds from Agram Imports, two bonds from Rayje Clothiers, and one bond from Orlon Jewelry, how much can she expect to pay in total?

Answer
A
$6,470.88
B
$8,630.16
C
$5,636.04
D
$6,000.00

Explanation

Bond prices are quoted as a percentage of the $1,000 par value. Agram costs $801.91 per bond, so three cost $2,405.73; two Rayje bonds cost $2,311.00; and one Orlon bond costs $919.31. The total is $2,405.73 + $2,311.00 + $919.31 = $5,636.04, which is choice C.

AI-written and checked against the verified answer.

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