Rob Morrisey purchased a $1,000 bond that was quoted at 102.25 and paying 8 7/8% interest. How much did Rob pay for the bond? How much annual interest will be received?

To calculate how much Rob paid for the bond, you need to multiply the quoted price (102.25) by the face value of the bond ($1,000).

First, convert the quoted price from a percentage to a decimal by dividing it by 100:
102.25 / 100 = 1.0225

Next, multiply the decimal quoted price by the face value of the bond:
1.0225 x $1,000 = $1,022.50

Therefore, Rob paid $1,022.50 for the bond.

To calculate the annual interest Rob will receive, you can multiply the interest rate (8 7/8%) by the face value of the bond ($1,000).

First, convert the mixed fraction interest rate to a decimal by adding the whole number and the fraction:
8 + 7/8 = 8.875

Next, convert the decimal interest rate to a percentage by multiplying it by 100:
8.875 x 100 = 887.5

Therefore, Rob will receive 887.5 dollars in annual interest.