Ask Question
24 September, 05:12

You purchase a bond with a coupon rate of 9.2 percent, a par value of $1,000, semiannual coupons, and a clean price of $830. If the next coupon payment is due in five months, what is the invoice price

+4
Answers (1)
  1. 24 September, 05:41
    0
    invoice price $ 837.67

    Explanation:

    the clean price represent the value of the bon net of interst if the next coupon payment is due in five months there is a month of interest included in the invoice (dirty price)

    principal x rate x time = interest

    1,000 x 0.092 x 1/12 = 7.67

    bond + accued interest = dirty price

    830 + 7.67 = 837.67
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You purchase a bond with a coupon rate of 9.2 percent, a par value of $1,000, semiannual coupons, and a clean price of $830. If the next ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers