79
RCMultiple Choice

Topic Test — Cumulative exam

Question 79 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

Corporate bonds from Dagofi Radar are selling at 88.354, bonds from Chambers Translation are selling at 112.894, and bonds from Essentia Inc. are selling at 96.262. If Roger wants to buy two bonds with a par value of $1,000 each from Dagofi Radar, five bonds with a par value of $500 each from Chambers Translation, and four bonds with a par value of $1,000 each from Essentia Inc., how much can he expect to spend?

Answer
A
$8,439.91
B
$8,500.00
C
$2,975.10
D
$9,343.97

Explanation

Bond prices are quoted as a percentage of par value. Dagofi costs 2 × $1,000 × 0.88354 = $1,767.08; Chambers costs 5 × $500 × 1.12894 = $2,822.35; and Essentia costs 4 × $1,000 × 0.96262 = $3,850.48. Adding these amounts gives $8,439.91, so the correct choice is $8,439.91.

AI-written and checked against the verified answer.

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