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Mkey [24]
3 years ago
12

Today, you are buying a $1,000 face value bond at an invoice price of $987. The bond has a coupon rate of 6 percent and pays int

erest semiannually. There are two months until the next coupon date. What is the clean price of this bond?
Business
1 answer:
ladessa [460]3 years ago
5 0

Answer:

clean price is $967

Explanation:

given data

face value = $1000

invoice price = $987

rate = 6 % = 3% semiannually

to find out

clean price

solution

we know here two months until the next coupon date so time is for 4 month

so clean price will be calculated as

clean price = bond price  - Interest accrue   .....................1

Interest accrue = 1000 × 3% × 4/6

Interest accrue = $20

so from equation 1

clean price = 987 - 20

clean price is $967

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Answer:

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Explanation:

The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.

As residual income is referred to income that calculated after deducting all debt and expenses occur on the project. ROI is a way to predict the profit of the project while residual income calculates the net income that the organisation generates from the project.

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how goods are produced often affects an entire society. natural resources, we have learned, are limited. while some natural reso
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While overuse of fossil fuels will cause pollution, world without them is also difficult. A balance is required.

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3 years ago
Read 2 more answers
The __________ shows how the capital is structured in the business, including the value of assets and the amount the firm owes a
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Answer:

balance sheet

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The <u>balance sheet</u> shows how the capital is structured in the business, including the value of assets and the amount the firm owes at a specific point in time.

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2 years ago
Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following rules: Nancy an
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From the first condition, Nancy already has $1,300. From the second condition, Nancy will also receive 10% of her capital balance which is 10% of $100,000 or $10,000. In total, Nancy has a share of $11,300. So, Betty's share is the remaining amount from the $40,000 net income which is
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3 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
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Answer:

$48.2

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