For government bonds, a quote of 90.8 translates to a dollar price per bond of what?

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Multiple Choice

For government bonds, a quote of 90.8 translates to a dollar price per bond of what?

Explanation:
Government bond prices are quoted as a percentage of par, with the fractional part expressed in thirty-seconds. A quote of 90.8 should be read as 90 and 8/32, not as 90.8 percent. Convert 8/32 to decimal: 8/32 = 0.25, so the price is 90.25% of par. With a par value of $1,000 per bond, the price equals 0.9025 × 1,000 = $902.50. The other amounts would correspond to different interpretations (e.g., 90.8% of par would be $908, etc.), but the correct handling uses the 32nds convention, yielding $902.50.

Government bond prices are quoted as a percentage of par, with the fractional part expressed in thirty-seconds. A quote of 90.8 should be read as 90 and 8/32, not as 90.8 percent. Convert 8/32 to decimal: 8/32 = 0.25, so the price is 90.25% of par. With a par value of $1,000 per bond, the price equals 0.9025 × 1,000 = $902.50. The other amounts would correspond to different interpretations (e.g., 90.8% of par would be $908, etc.), but the correct handling uses the 32nds convention, yielding $902.50.

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