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Sergeeva-Olga [200]
3 years ago
13

A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 111% of its $1,000

par value. If the last interest payment was made 2 months ago and the coupon rate is 5.40%, the invoice price of the bond will be _________.
Business
1 answer:
aleksklad [387]3 years ago
5 0

Answer:

$2,220

Explanation:

Calculation for what the invoice price of the bond will be

Invoice price = 1.11(1,000) + 30(2/0.054)

Invoice price =1,110+30(37)

Invoice price=1,110+1,110

Invoice price=$2,220

Therefore the invoice price of the bond will be $2,220

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Answer:

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