A corporate bond is listed in the Wall Street Journal and shows an ask price of 98.62. If the corporate bonds have a par value of $1,000, what dollar amount should a buyer expect to pay?

Question

Quizplus · Accepted Answer

The ask price of 98.62 means that the bond is priced at 98.62% of its par value. Since the par value is $1,000, the cost to buy the bond would be 98.62% of $1,000, which is $986.20.

A Corporate Bond Is Listed in the Wall Street Journal