Bonds issued by Animite Energy are selling at a rate of 95.230. Which of the following statements is true for a bond of par value $1,000?

A bond quoted at 95.230 sells for 95.230% of its $1,000 par value. Its market value is $1,000 × 0.95230 = $952.30. That is $1,000 − $952.30 = $47.70 below par, so it includes a discount of $47.70.

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