A coupon bond paying semiannual interest is reported as having an ask price of 1

Question

A coupon bond paying semiannual interest is reported as having an ask price of 109% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the invoice price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

A coupon bond paying semiannual interest is reported as having an ask price of 109% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the invoice price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Explanation / Answer

PV 1090 interest due 0.50% Invoice price 1084.577

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.