Bonds worth $1,000 issued by the dowc beverage co. are selling at 91.760. how much would you have to pay for seven such bonds?
a. $764.23
b. $7,642.32
c. $7,000.00
d. $6,423.20

The answer is: D) $6,423.20

Explanation:

When you look at the price of bonds, for example this one, the 91.760 means that the bonds are being sold at 91.76% of their face value. So if Dowc Beverage's bonds are have a face value of $1,000, it means that their current fair market value is $917.60

To find out how much will seven bonds cost, you just multiply $917.60 x 7 = $6,423.20

The answer is: D) $6,423.20

Explanation:

When you look at the price of bonds, for example this one, the 91.760 means that the bonds are being sold at 91.76% of their face value. So if Dowc Beverage's bonds are have a face value of $1,000, it means that their current fair market value is $917.60

To find out how much will seven bonds cost, you just multiply $917.60 x 7 = $6,423.20

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

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