A bond with a face value of $100,000 and a quoted price of 102¼ has a selling price of:

a. $120,225.

b. $102,025.

c. $100,225.

d. $102,250.

d. $102,250.

Explanation:

The computation of the selling price is shown below:

= Bond face value * quoted price

= $100,000 * 1.0225

= $102,250

To determine the selling price we multiplied the bond face value with the quoted price so that the accurate selling price can come.

We simply fraction the quoted price and then divide it by 100

In mathematically,

= 409 : 4

= 102.25 : 100

= 1.0225