Answer:
None of these choices are correct.
Step-by-step explanation:
If a bond is quoted at 99.875, it means that it is sold at 99.875% Â of the face value;
Face value = 1000
Therefore, Price = 0.99875 * 1000
Price = $998.75
If Leona pays  5.5% of the selling price, it means that she is paying additional cost which will make the total cost more than the quoted price;
5.5% of 998.75 is;
0.055*998.75 = $54.93
The total cost = $998.75 +$54.93
= $1053.68
Therefore, none of the given choices is correct.
Answer:
None of these choices are correct.
The total price of the $1000 bond is $105.37 (rounded to nearest cent)
Explanation:
Give the selling price of a $1000 bond = Â $99.875
According to question, Brokerage fee = 5.5% of $99.875
[tex]5.5 \% \text { of } \$ 99.875=\frac{5.5}{100} \times 99.875=\$ 5.493[/tex]
Total Cost of the bond is calculated by the formula, Â
Total Cost = The selling Price + Brokerage Fee
Total Cost = $99.875 + $5.493
Therefore Total cost =$ 105.368
or, the total price of the $1000 bond is $105.37 (rounded to nearest cent)
