Hyacinth buys a $10,000 face value bond for $9,250. If the interest rate on similar bonds rises by 2%, what is the approximate price of the kind of bond that Hyacinth purchased?

$9,435

Explanation:

If 100% of $10,000 face value gives the bond for $9,250

Then for 2% rise, that is, 102%  of the bond will purchase = 102 X $9.250/100 = $9,435

∴ The approximate price of bond purchased = $9,435

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