11
QuizMultiple Choice

Buying Bonds

Question 11 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Corporate bonds from Hyren Airlines are selling at 106.133, bonds from Xyx Motors are selling at 97.701, and bonds from Ergar Appliances are selling at 101.294. If all of the bonds mentioned have a par value of $1,000 apiece, how much will it cost George to purchase one from each corporation?

Answer
A
$3,051.28
B
$3,000.00
C
$3,305.12
D
$2,694.88

Explanation

Bond prices are quoted as a percentage of par value. For a $1,000 bond, the prices are $1,061.33, $977.01, and $1,012.94, respectively. Adding them gives $3,051.28, so the correct choice is $3,051.28.

AI-written and checked against the verified answer.

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