Answers 26-27 Ignite Financial Literacy Personal Finance - EL3403 Buying BondsQuestion 24

24

QuizMultiple Choice

Buying Bonds

Question 24 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Daniel buys one bond each with a par value of $1,000 from Grath Oil, Ombor Medical Supplies, and Dwyn Horticulture. Grath Oil bonds are selling at 120.514, Ombor Medical Supplies bonds are selling at 90.773, and Dwyn Horticulture bonds are selling at 101.180. What is the total face value of Daniel’s bonds?

Answer

A

$3,124.67

B

$3,000.00

C

$3,312.46

D

$312.47

Explanation

Face value is based on each bond’s stated par value, not its current selling price. Daniel owns three bonds with a par value of $1,000 each, so the total face value is 3 × $1,000 = $3,000.00, choice B.

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