Respuesta :
Answer:
The amount customers are expected to pay $7600 per bond
Explanation:
8M implies that the municipal bond has $8000 as its par value.
The amount a customer would is 95% of the par value
Hence, customers are expected to pay $7600 (95%*$8000)
For instance a 5M at 105 means that the par value of the bond is $5000 but issued at 105%, which translates into $5250 without considering commissions as well as the accrued interest on the bond which might also be factored into the price.
Answer:
$7,600
Explanation:
From the question, it can be deduced that the bond was issued at 95% of its par value, while the 8M indicates that it par value is $8,000. Therefore, the amount the customer will pay for the bonds without including commissions and accrued interest can be calculated as follows:
Amount to pay by the customer = Par value × Issued rate
= $8,000 × 95%
= $7,600
Therefore, the amount the customer will pay for the bonds without including commissions and accrued interest is $7,600.
