A $1,000 face value bond with a quoted price of 97 is selling for
A) $1,000.
B) $970.
C) $907.
D) $97.

Name: A $1,000 face value bond with a quoted price of 97 is selling for A) $1,000. B) $970. C) $907. D) $97.
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Question

Quizplus · Accepted Answer

The quoted price of a bond is typically given as a percentage of its face value. Therefore, a quoted price of 97 means the bond is selling for 97% of its $1,000 face value, which calculates to $970.

A $1,000 Face Value Bond with a Quoted Price of 97