Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.

They have a coupon rate of 8.625%.

Find the total cost if commissions are $10 per bond.

Total par value = 32 bonds x $96.7

=$3094.4

total bond value = par vaue + total interest

total bond value = par value (1+ni)

n = 2024-2017

= 7

i = 8.625%

total bond value = $4692.64

total cost = total bond value - commissions

total cost = $4692.64 - (32 x $10)

= $4642.64

Joaquim Alvez will have a total cost of $4642.64.