Question

A bond quoted at $93 \frac{1}{8}$ is equal to ____ per $1000.00 of the face amount.

A.)$9.32

B.)$9,312.50

C.)$931.25

D.)$93.16

Answer 1

Given:
93 1/8
1,000

1,000 is the par value of a bond. It should be equal to 100%.If it is quoted at a lesser rate, it means that the bond is sold at less than the par value.

93 1/8 is actually 93.125%

1,000 x 93.125% = 931.25 Choice C.