Bond prices in the newspaper or online are quoted as a percentage of their face value of $1000.If the bond price is 103.25,this bond's value =

Question

Quizplus · Accepted Answer

Bond prices are quoted as a percentage of their face value of $1000. Therefore, a bond with a price of 103.25 is priced at 103.25% of its face value, which is $1,000.

To calculate the value of the bond, we need to multiply the bond price by the face value and then divide by 100.

Value of bond = Bond price × Face value / 100
Value of bond = 103.25 × $1000 / 100 
Value of bond = $1,032.50

Therefore, the bond's value is $1,032.50, which is option B.

Bond Prices in the Newspaper or Online Are Quoted as a Percentage