Question

How much would a $1,000 bond quoted at 96.5 sell for?

Answer 1

What is a 'Bond Discount'
The amount by which the market price of a bond is lower than its principal amount due at maturity. This amount, called its par value, is often $1,000. As bond prices are quoted as a percent of face value, a price of 98.00 means that the bond is selling for 98% of its face value of $1,000.00 and the bond discount is 2%.