Asked by Sarah Randolph on Jul 05, 2024
Verified
A bond has a flat price of $985, and it pays an annual coupon. The last coupon payment was made 90 days ago. What is the invoice price if the annual coupon is $69?
A) $999.55
B) $1,002.01
C) $1,007.45
D) $1,012.13
Flat Price
The price of a bond without the inclusion of accrued interest, representing only its face value.
Invoice Price
The original price listed by the manufacturer or supplier to the retailer before any deductions or discounts.
Annual Coupon
The annual interest payment paid to bondholders, usually expressed as a percentage of the bond's face value.
- Develop proficiency in calculating the accrued interest of bonds across diverse payout frequencies.
Verified Answer
ZS
Learning Objectives
- Develop proficiency in calculating the accrued interest of bonds across diverse payout frequencies.