An XYZ Corporation $2000 bond,paying bond interest at j₂= 8%,matures at par on September 1,2023.What did a buyer pay for this bond on July 20,2015,if the market quotation was 104.75?

Question

Quizplus · Accepted Answer

The market quotation of 104.75 means the bond was purchased at 104.75% of its face value. Therefore, the price paid was 104.75% of $2000, which equals $2156.30.

An XYZ Corporation $2000 Bond,paying Bond Interest at J2= 8%,matures

An XYZ Corporation $2000 Bond,paying Bond Interest at J₂= 8%,matures