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steposvetlana [31]
3 years ago
6

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
Business
1 answer:
murzikaleks [220]3 years ago
6 0

Answer:

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

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Answer: 14%

Explanation:

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r = D/ P + g

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r = 0.1401

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If you need any clarification do react or comment.

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SIZIF [17.4K]

Answer:

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