Anyone know how to solve total cost of bonds?

I will give the person 10 points for this problem

Tom buys 8 bonds 3 1/2 09 at 84 and he buys 4 bonds at foot company for 4 1/8 10 at 93 and the comission bonds is $3.

What is the total cost of all purchases?

I need help on knowing how to do this I know the answer but I need to know how to do this so please help me out.

1 Answer

Relevance
  • 8 years ago
    Favorite Answer

    what is a 3 1/2 09 ?? and a 4 1/8 10 ?? dates? discount rates? stated interest rate / yield / yield to maturity? and do you mean $3 cost per bond? { bonds are usually in denominations of $1,000 face value, but yours seem to be $100 face value

    after that, it is just a matter of doing the arithmetic

    8 x (84 + 3) + 4 x (93 + 3) = ___ {assuming the unusual numbers are not important}

Still have questions? Get your answers by asking now.