bonds from the u.s. treasury are selling at 102.293, bonds from alachua county are selling at 85.681, and…

bonds from the u.s. treasury are selling at 102.293, bonds from alachua county are selling at 85.681, and bonds from the city of northfield are selling at 94.442. how much will it cost lana if she wants to purchase one bond with a par value of $1,000 from each of these sources? a. $3,000.00 b. $3,282.41 c. $2,824.16 d. $328.24

bonds from the u.s. treasury are selling at 102.293, bonds from alachua county are selling at 85.681, and bonds from the city of northfield are selling at 94.442. how much will it cost lana if she wants to purchase one bond with a par value of $1,000 from each of these sources? a. $3,000.00 b. $3,282.41 c. $2,824.16 d. $328.24

Answer

Explanation:

Step1: Calculate cost of U.S. Treasury bond

The selling - price of the U.S. Treasury bond is 102.293% of the par - value. For a par - value of $1000, the cost is $1000\times\frac{102.293}{100}=1000\times1.02293 = 1022.93$.

Step2: Calculate cost of Alachua County bond

The selling - price of the Alachua County bond is 85.681% of the par - value. For a par - value of $1000, the cost is $1000\times\frac{85.681}{100}=1000\times0.85681 = 856.81$.

Step3: Calculate cost of Northfield bond

The selling - price of the Northfield bond is 94.442% of the par - value. For a par - value of $1000, the cost is $1000\times\frac{94.442}{100}=1000\times0.94442 = 944.42$.

Step4: Calculate total cost

Add up the costs of the three bonds: $1022.93 + 856.81+944.42=2824.16$.

Answer:

c. $2,824.16