If a bond was quoted in the newspaper at 75, the price in dollars was:
A)$7.50
B)$75
C)$750
D)$1,000
E)$1,075

Question

Quizplus · Accepted Answer

Bond quotes are typically represented as a percentage of their face value or par value, which is usually $1,000. Therefore, a bond quoted at 75 would be 75% of $1,000, which is $750. Choice A is too low since it represents only 10% of the correct price, while choice B is the face value of the bond and choice D is higher than the correct price. Choice E is also too high, representing the total value of the bond plus the quoted price.

If a Bond Was Quoted in the Newspaper at 75