Question 1179376: Ten corporate $1,000 bonds quoted at 100 3/4 were purchased. If a $12 brokerage fee was paid per bond, what is the total cost.
Answer by CPhill(1959)   (Show Source):
You can put this solution on YOUR website! Here's how to calculate the total cost:
1. **Bond Price:**
* A quote of 100 3/4 means 100.75% of the bond's face value.
* Since the bonds are $1,000 bonds, the price per bond is 100.75% of $1,000, which is $1,007.50.
2. **Total Bond Cost:**
* 10 bonds * $1,007.50/bond = $10,075.00
3. **Total Brokerage Fees:**
* 10 bonds * $12/bond = $120.00
4. **Total Cost:**
* $10,075.00 + $120.00 = $10,195.00
**Therefore, the total cost is $10,195.00.**
|
|
|
