Answer:
The re- offering profit of the dealer will be $3.75 per bond
Explanation:
The dealer purchased the bonds at the price which is calculated to an 8% YTM (Yield to Maturity), along with an additional 5/8th point which is knocked off that price.
The dealer then re- offers those bonds and the bonds are marked up point of 3/8. Therefore, the re- offering profit of the dealer is computed as:
= 3/8th mark up per bond
= $3.75 per bond
