timothy periodically purchases bonds issued by prince waste collection. last year, he bought two bonds in…

timothy periodically purchases bonds issued by prince waste collection. last year, he bought two bonds in february, two bonds in june, and one bond in august, then sold them all in october. prince waste collection bonds were selling at 94.593 in february, 92.661 in june, 105.480 in august, and 102.882 in october. if each bond that timothy bought had a par value of $1,000, how much profit did he make from buying and selling these bonds? a. $15.91 b. $34.42 c. $159.12 d. $344.22

timothy periodically purchases bonds issued by prince waste collection. last year, he bought two bonds in february, two bonds in june, and one bond in august, then sold them all in october. prince waste collection bonds were selling at 94.593 in february, 92.661 in june, 105.480 in august, and 102.882 in october. if each bond that timothy bought had a par value of $1,000, how much profit did he make from buying and selling these bonds? a. $15.91 b. $34.42 c. $159.12 d. $344.22

Answer

Explanation:

Step1: Calculate total purchase - cost

The cost of bonds bought in February: $2\times94.593\times10 = 1891.86$ (since par - value is $1000$ and price is per $100$, so multiply by $10$). The cost of bonds bought in June: $2\times92.661\times10=1853.22$. The cost of bonds bought in August: $1\times105.480\times10 = 1054.8$. The total purchase - cost $C$ is $C=1891.86 + 1853.22+1054.8=4800$.

Step2: Calculate total selling - price

The number of bonds sold is $2 + 2+1=5$. The selling - price of all bonds $S$ is $S = 5\times102.882\times10=5144.1$.

Step3: Calculate the profit

Profit $P=S - C$. $P=5144.1-4800 = 344.1\approx344.22$.

Answer:

d. $$344.22$