The correct answer is D, $102,875.00. Municipal bonds are quoted as a percentage of par value, and par value is typically $1,000 per bond.

Step-by-step calculation:

Convert the quote 102-7/8 into a decimal:

7/8 = 0.875

So, 102-7/8 = 102.875% of par

Apply this percentage to one bond:

$1,000 × 102.875% = $1,028.75 per bond

Multiply by the number of bonds (100 bonds):

$1,028.75 × 100 = $102,875

Choice A and B are incorrect because they represent the price for 10 bonds, not 100. Choice C is close but incorrectly calculates the fractional portion.

Understanding how to convert bond quotes (including fractions like 7/8) into dollar amounts is essential for pricing municipal securities on the SIE exam.

Thus, the investor would pay $102,875.00, making Answer D correct.