A bond with a face value of $200,000 and a quoted price of 102? has a selling price of ?

Answer:

The formula for calculating the selling price of bond given a quoted price is

= Face value * Quoted price

As per the information given in the question we have

Face value = $ 200,000 ;

Quoted price =102? % = ( 102 + 0.125 ) % = 102.125 %    ( Since ? = 0.125 )

Applying the above information in the formula we have

= $ 200,000 * 102.125 %

= $ 204,250

Thus the bond with a face value of $200,000 and a quoted price of 102? has a selling price of = $ 204,250