Score: 0 of 1 pt 4..QQ-9 Choose the best answer to the following question. Expla

Question

Score: 0 of 1 pt 4..QQ-9 Choose the best answer to the following question. Explain your reasoning What is the price you pay for a bond with a face value of $7000 selling at 108 points? Choose the correct answer below. o A. It is $7390. Divide the face value by 108 points. O B. It is $7560. Divide the face value by 108 points. 19 of 20 (4 compl C. It is $7710. Divide the face value by 108 poi 0 D. It is $7710. Multiply the face value by 108%. E. It is $7390. Multiply the .ce value by 108%. O F It is $7560. Multiply the face value by 108%.

Explanation / Answer

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS OPTION F : $7,560

Bond Points are a secret way of quoting bond prices wherein the number of points is the percentage of face value at which it is trading. Hence, 108 bond points imply the bond is currently trading @108% of its' face value, i.e. 7000*108% = $7,560

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