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8 March, 03:49

A corporate bond was quoted yesterday at 102.16 while today's quote is 102.19. What is the change in the value of a bond that has a face value of $3,000?

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  1. 8 March, 06:08
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    The change in the value of the bond is $0.90. In other words, the value of the bond has increased by $0.90 from yesterday to today.

    Explanation:

    We have Value of the bond = Quoted value / 100 * face value

    So,

    Yesterday value of the bond = 102.16/100 * 3,000 = $3064.8;

    Today value of the bond = 102.19/100 * 3,000 = $3065.7.

    => Change in the value of the bond = Today value of the bond - Yesterday value of the bond = $3065.7 - $3064.8 = $0.90.

    In other words, the value of the bond has increased by $0.9 from yesterday to today.
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