Solve the problem.
-Claire Hummell bought 2 Hecht Company (HCO)bonds maturing in 2032. According to the bond table, the last price is listed as 98.375. With a sales commission of $1 per bond, find the total purchase price.

Question

Quizplus · Accepted Answer

The last price of the bond is 98.375, which means each bond costs 98.375% of its face value. Since each bond has a face value of $1,000, the cost of each bond is:
$1,000 x 98.375% = $983.75
Since Claire bought 2 bonds, her total cost before commission is:
$983.75 x 2 = $1,967.50
Adding the $1 commission per bond, the total purchase price is:
$1,967.50 + $2 = $1,969.50 First, we need to calculate the total price of the bonds before commission. To do that, we multiply the last price by the face value of each bond:

$98.375 x 2 = $196.75

Then, we add the commission:

$196.75 + $2 = $198.75

Thus, the total purchase price is $1,969.50.

Therefore, the best choice is C.

Solve the Problem. -Claire Hummell Bought 2 Hecht Company (HCO)bonds Maturing in 2032