Given that the bond price of 12 $1,000 bonds is $100.75.
[tex]100.75\times12=1209.[/tex]With a 6% brokerage fee
Find the total cost to the nearest cent
First, we calculate the 6% brokerage fee,
6/100 × 100.75
= 0.06 x 1
Total cost therefore is the sum of brokerage fee and the cost of bond
= $6.045 + $100.75
= $106.795
To the nearest cent = $106.8
