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Grace wishes to buy a corporate bond with a par value of $1,000 from SFT Legal. If Grace’s broker charges her a commission of 4% of the market value of each bond, and SFT Legal has a market rate of 103.563, how much commission does Grace owe her broker? a. $107.56 b. $41.43 c. $40.00 d. $44.14

Respuesta :

tywower
The correct response is $41.43...

:)

The par value or the face value of the share is the price that one gets while issuing.              

So, par value is $1000              

A commission of 4 % is charged by the broker. The market rate is $103.563,  so commission becomes as per par value =  

[tex]\frac{4}{100}*1035.63=41.425[/tex]    

Hence, option B $41.43 is the correct answer.              

               

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