A $1,000 bond with a quoted price of 103 3/4 is selling for:

Question

Quizplus · Accepted Answer

To convert the quoted price of 103 3/4 to a decimal, we add the whole number (103) to the fraction (3/4 converted to decimal as .75), giving us 103.75. This quoted price of 103 3/4 represents a percentage of the bond's face value, so to find the actual price of the bond, we multiply the face value by the percentage:

$1,000 x 1.0375 = $1,037.50

Therefore, the bond is selling for $1,037.50, which is closest to answer choice C ($1,030.75).

A $1,000 Bond with a Quoted Price of 103 3/4