Question of the Week

An order for corporate bonds marked "4M95." In total this order would be worth?

a) $95
b) $380
c) $3,800
d) $4,950
e) $49,500

Answer:

The correct answer is c

An order marked "4M95" means the investor wishes to purchase 4 bonds at a price of $950 each. Remember that the par value of most bonds are $1,000.

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