Hello! There’s an error in question VR4X7-FVB9G – Change “bond at 91” to “bond at 910”.
Thanks for reaching out! The question is actually correct - many bonds are quoted in a “percentage of par” form, meaning this bond is trading at 91% of $1,000 (par), which is $910. As it says in the chapter linked above, financial professionals quote bonds this way to save time. Quoting “ninety one” is a bit faster than “nine hundred and ten dollars.” When the SIE exam presents a bond question like this, they’ll almost always utilize percentage of par quotes in this form to make the question a bit trickier.
When you see this type of quote (like 91), it’s easiest to add a zero to the end to find the actual price. Of course, if it’s a corporate bond quote in fractions (1/8ths) or a US government bond quote in 32nds, it takes a bit more work than just adding a zero.
I hope this helps! Please let me know if you have any questions.
Thanks…yes, after seeing another question written the same way, I figured it must just be “how” it’s referred to! I was going to go back and see if I could delete my post and not waste your time! Pardon me!
No problem at all; it’s good feedback for us to know that we should highlight this information sooner in the text. If there’s anything else you feel we could clarify, please let us know!