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belka [17]
4 years ago
6

A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 116% of its $1,000

par value. If the last interest payment was made 3 months ago and the coupon rate is 5.90%, the invoice price of the bond will be _________. Multiple Choice $1,160.00 $1,189.50 $1,174.75 $1,130.50\
Business
1 answer:
Anna35 [415]4 years ago
3 0

Answer:

$1,174.75

Explanation:

The computation of the invoice price of the bond is shown below:

As we know that

Invoice Price of Bond = Ask Price of Bond + Accrued interest

where,

Ask Price is

= $1,000 × 116%

= $1,160

Interest accrued for 3 months is

= $1,000 × 5.90% × 3 months ÷ 12 months

= $14.75

So,

Invoice Price of Bond is

= $1,160.00 + $14.75

= $1,174.75

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Answer:

NPV= $1,983,471.1

Explanation:

Giving the following information:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

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3 0
3 years ago
If Texia specializes in food, it can produce 1,000 units of food and 0 units of clothing this year. If it specializes in clothin
Sati [7]

Answer:

Texia; Texia

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3 0
3 years ago
A manager feels confident that earnings will increase in the next few months and therefore believes it will benefit himself, his
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<h3>What is a conscious marketing approach?</h3>

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However, as he thinks about exaggerating the current earnings just a little, this will have serious long-term consequences for the firm.

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Answer:

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5 0
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