What is the market price of a bond with a $5,000 face value if the price...

Question

Question

What is the market price of a bond with a $5,000 face value if the price quote is 101.1629?

business finance

Answer 1

Answer #1

The market price of the bond is calculated as below:

Market Price of the Bond = Face Value of the Bond*Price Quote

_____

Solution:

Here, Face Value of the Bond = $5,000 and Price Quote = 101.1629%

Market Price of Bond = 5,000*101.1629% = $5,058.145 or $5,058.15

Answer is $5,058.15 or $5,058 (if rounded off to zero decimal places)

Answer 2

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