corporate bonds from dagofi radar are selling at 88.354, bonds from chambers translation are selling at…

corporate bonds from dagofi radar are selling at 88.354, bonds from chambers translation are selling at 112.894, and bonds from essentia inc. are selling at 96.262. if roger wants to buy two bonds with a par value of $1,000 each from dagofi radar, five bonds with a par value of $500 each from chambers translation, and four bonds with a par value of $1,000 each from essentia inc., how much can he expect to spend?\na. $8,439.91\nb. $8,500.00\nc. $2,975.10\nd. $9,343.97

corporate bonds from dagofi radar are selling at 88.354, bonds from chambers translation are selling at 112.894, and bonds from essentia inc. are selling at 96.262. if roger wants to buy two bonds with a par value of $1,000 each from dagofi radar, five bonds with a par value of $500 each from chambers translation, and four bonds with a par value of $1,000 each from essentia inc., how much can he expect to spend?\na. $8,439.91\nb. $8,500.00\nc. $2,975.10\nd. $9,343.97

Answer

Explanation:

Step1: Calculate cost of Dagofi Radar bonds

The bonds from Dagofi Radar are selling at 88.354% of par - value. Roger buys 2 bonds with a par - value of $1000 each. The cost of these bonds is $2\times1000\times0.88354 = 1767.08$.

Step2: Calculate cost of Chambers Translation bonds

The bonds from Chambers Translation are selling at 112.894% of par - value. Roger buys 5 bonds with a par - value of $500 each. The cost of these bonds is $5\times500\times1.12894=2822.35$.

Step3: Calculate cost of Essentia Inc. bonds

The bonds from Essentia Inc. are selling at 96.262% of par - value. Roger buys 4 bonds with a par - value of $1000 each. The cost of these bonds is $4\times1000\times0.96262 = 3850.48$.

Step4: Calculate total cost

The total cost is $1767.08 + 2822.35+3850.48=8439.91$.

Answer:

a. $8,439.91