Pierce wishes to purchase a municipal bond with a par value of $500 from chattahoochee county, and he is trying to decide which broker he should employ to purchase the bond. broker a charges a 3.1% commission on the market value of each bond sold. broker b charges a flat $24 for each bond sold. if the bond has a market rate of 88.754, which broker will give pierce the better deal, and by how much?

He should take the option one of sales commission of 3.1% on each bond. If he takes the 2nd option, he is required to pay 24$ per bond. But if he takes the ist option, he is required to pay 15.5$ per bond. 88.754 is the market rate. Total investment is of 500$. Multiply the commission rate with the amount and you get 15.5 $. There is a difference of 8.5 dollars between the two options.

answer; /// the above statement is (true);

the answer is either c or b, i cant be to sure tho.