Problem 14-15 A government bond with a coupon rate of 7% makes semiannual coupon payments on...

Question

Question

Answer 1

Answer #1

Clean price = $1,003.750

Accrued interest = $1,000 * (7%/2) * (15 / 182) = $2.8846

Invoice price = Clean price + Accrued interest
= $1,003.750 + $2.8846
= $1,006.63

Invoice price = $1,006.63

Add a comment

Answer 2

Similar Homework Help Questions

A band with a coupon rate of 8% makes semiannual coupon payments on January 15 and...

A band with a coupon rate of 8% makes semiannual coupon payments on January 15 and July 15 of each year The Wall Street Journal reports the ask price for the bond on January 30 at 100.1563. What is the invoice price of the bond? The coupon period has 182 days. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Invoice price
1. A bond with a coupon rate of 7% makes semiannual coupon payments on January 15...

1. A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on January 30 at 100.0625. What is the invoice price of the bond? Assume this bond use actual/actual day count convention, and the 6month coupon period has 182 days. 2. Suppose that today's date is April 15. A bond with a 10% coupon paid semiannually every...
16. value: 10.00 points You did not receive full credit for this questi A government bond...

16. value: 10.00 points You did not receive full credit for this questi A government bond with a coupon rate of 8% makes semiannual coupon payments on January 10 and July 10 of each year. The Wall Street Journal reports the asked price for the bond on January 25 at 100:7. What is the invoice price of the bond? The coupon period has 182 days. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Invoice...

A bond with a coupon rate of 6% makes semiannual coupon payments on January 15 and...

A bond with a coupon rate of 6% makes semiannual coupon payments on January 15 and July 15 of each year The Wall Street Journal reports the ask price for the bond on January 30 at 100 250, What is the invoice price of the bond? The coupon period has 182 days. (Do not round intelmediate calculations. Round your answer to 2 decimal places.) Invoice price A newly issued bond pays its coupons once a year. Its coupon rate is...
A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having...

A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 109% of its $1,000 par value. If the last interest payment was made 72 days ago, and this interest period has 183 days, and the coupon rate is 4.28%, what is the invoice price of the bond?
The bond has a coupon rate of 6.65 percent, it makes semiannual payments, and there are...

The bond has a coupon rate of 6.65 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A clean price of $1,031 and the par value is $1,000. What is the invoice price?

1. Consider a bond paying a coupon rate of 12.25% per year semiannually when the market...

1. Consider a bond paying a coupon rate of 12.25% per year semiannually when the market interest rate is only 4.9% per half-year. The bond has six years until maturity. a. Find the bond's price today and twelve months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2...
The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are...

The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A clean price of $977 and the par value is $1000. What is the invoice price? $956.63 $946.45 $997.37 $1007.55 $966.82
The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are...

The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A clean price of $977 and the par value is $1000. What is the invoice price? $997.37 $956.63 $946.45 $966.82 $1007.55

The bond has a coupon rate of 6.35 percent, it makes semiannual payments, and there are...

The bond has a coupon rate of 6.35 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A clean price of $1001 and the par value is $1000. What is the invoice price? $969.25 $979.83 $1032.75 $1022.17 $990.42