Answer:
invoice price (dirty price) = $1,004.13
Explanation:
semi-annual coupon = $1,000 x 7% x 1/2 = $35
clean price = $1,001.25
accrued interest = (Jan. 30 - Jan. 15) x $35 x 1/182 = $2.88
invoice price (dirty price) = clean price + accrued interest = $1,001.25 + $2.88 = $1,004.13
the dirty price or invoice price of a bond includes any accrued interest that the bond may have earned in the period between the last coupon payment and the transaction date.
Answer:
<u>time = 318.77</u>
It will be after 318 months
Explanation:
We are asked to find the time of an annuity of 1,000 monthly payment
which present value is 180,000
C = 1000
rate = 0.004
time ??
PV = 180,000
We clear out the dividend:
Then we clear the power up, notice it is negative, so we have to multiply by (-1)
We now use logarithmics to solve for time
<u>time = 319</u>