Since bond market values are expressed as a percentage of their bond value, a $1,000 bond that is being sold at 93 would be trading at $ .

Since bond market values are expressed as a percentage of their bond value, a $1,000 bond that is being sold at 93 would be trading at $ .

$930

Explanation:

a) Calculation:

93% of $1,000 = $930

b) Let assume that Jophas Company sells its bond at $930.  It implies that the bond is being sold at a discount.  The bond is discounted when its selling price of $930 is less than the face value of $1,000.  The bondholders are paying less than they would be paid at the bonds' maturity.  At maturity, the bondholders will be paid $1,000 for each of the bonds they hold.  This is in addition to the coupon payments that will be paid by the company periodically.

answer///supply is elastic, and demand is inelastic;