A U.S. Government bond is selling in the market at 97.08. The dollar value of this bond is:

A U.S. Government bond is selling in the market at 97.08. The dollar value of this bond is:

• A. $970.25
• B. $970.80
• C. $972.50
• D. $9,708.00

Answer: (C)

When a U.S. Government bond is priced in the market, the price is typically expressed as a percentage of its face value, which is usually $1,000 for most government bonds. The notation "97.08" means that the bond is selling at 97.08% of its face value. To calculate the dollar value of the bond, you would multiply the percentage by the face value. In this case, you would perform the following calculation: 1. Convert the percentage to a decimal: 97.08% is 0.9708. 2. Multiply this decimal by the face value of the bond: \[ 0.9708 \times 1000 = 970.80 \] This calculation indicates that the bond is valued at $970.80. Therefore, the dollar value of the bond is $970.80, which matches the choice given in the options.

When a U.S. Government bond is priced in the market, the price is typically expressed as a percentage of its face value, which is usually $1,000 for most government bonds. The notation "97.08" means that the bond is selling at 97.08% of its face value.

To calculate the dollar value of the bond, you would multiply the percentage by the face value. In this case, you would perform the following calculation:

1. Convert the percentage to a decimal: 97.08% is 0.9708.

2. Multiply this decimal by the face value of the bond:

[

0.9708 \times 1000 = 970.80

]

This calculation indicates that the bond is valued at $970.80. Therefore, the dollar value of the bond is $970.80, which matches the choice given in the options.