Ask Question
BusinessBusiness
15 January, 21:11

What is the current price for a $8,500 bond that has a price quote of 89? What is the current price of the bond?

+2
Answers (1)
  1. 15 January, 23:05
    0
    Current Price of bond = Number of Bonds * price quoted ... Equation 1

    Number of Bonds = Total Nominal value/100 ... Equation 2

    So this means that the formula for the computation of market value of all bonds held is same to the computation of total Market value of shares held.

    Market Value of bonds held = Total Nominal value/100 * price quoted ... EQ3

    Putting values in the equation 3

    Market Value of bonds held = $8500/100*$89 per bond = $7565

    Equation 3 was derived to enable you understand why we divide Total nominal value with 100 (par value). We do this to compute "Number of bonds held."
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the current price for a $8,500 bond that has a price quote of 89? What is the current price of the bond? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Walt's monthly salary is $6,962.50. what would be his equivalent weekly salary?
Answers (1)
The annual revenue of the tie-dye t-shirt operation is currently $5,000 but is decreasing by $500 each year. how fast are annual sales changing?
Answers (1)
The price elasticity of demand is given by this equation: Price Elasticity of Demand equals StartFraction percentage change in the quantity demanded Over percentage change in price EndFractionPrice Elasticity of Demand=
Answers (1)
When jeep wrangler produces the new year's model vehicle, they discontinue production of last year's?
Answers (1)
A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a (n) addition adjustment to net income in the cash flows from operating activities
Answers (1)
New Questions in Business
Sun Yip, the marketing manager at Bryte Systems Inc., decides to enter into foreign markets as his company has surplus amounts of fluorescent light bulbs because of an accidental overrun in manufacturing.
Answers (1)
Robert only consumes X and Y, and his indifference curves have the usual convex shape. Consider the consumption bundles (3, 9), (6, 6), and (9, 3) (Hint: The consumption bundles completely exhaust Robert's income).
Answers (1)
Q 4.41: Pierson Industries has a beginning retained earnings balance of $42,500. An adjusted trial balance shows total expenses of $97,300 and revenue of $104,800.
Answers (1)
Dr. Homer Simpson, an economics professor, decided to take a year off from teaching to run a commercial fishing boat in Alaska. That year, Professor Simpson would be officially counted as: A. structurally unemployed. B. frictionally unemployed. C.
Answers (1)
Which of the following provisions are part of the requirements that must be in place for an employee stock-purchase plan (covering rank-and-file employees) to avoid recording compensation expense related to the plan to avoid recording compensation
Answers (1)
Home » Business » What is the current price for a $8,500 bond that has a price quote of 89? What is the current price of the bond?
Sign Up Forgot Password?