When an investor purchases a $1,000 par value bond that was quoted at 97.16, the investor:

Name: When an investor purchases a $1,000 par value bond that was quoted at 97.16, the investor:
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Question

Quizplus · Accepted Answer

The bond was quoted at 97.16, which means the investor pays 97.16% of the face value for the bond. Since the face value is $1,000, the investor pays $971.60 for the bond, which is 97.16% of $1,000 face value. Therefore, the investor pays 97.16% of face value for the bond, which is the correct answer.

When an Investor Purchases a $1,000 Par Value Bond That