Ascertain the meaning if the bond is traded at 97 1 / 2 .

Question

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Answer 1

Question

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.

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Answer 2

Question

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.

Answer 6

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.

Answer 7

Chapter 10, Problem 1MCQ

To determine

Ascertain the meaning if the bond is traded at 971/2.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

Option b. The bond trades at $975 per $1,000 bond.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations.

Buying and selling of bond in the market at 971/2 means that the bond is traded at 97.5% or at

$975 per $1,000 bond and it is issued less than the face value of the bond ($975<$1,000).

Therefore, Option b. The bond trades at $975 per $1,000 bond is the correct option and the other options of a, c and d are incorrect.