Question

A coupon bond paying semiannual interest is reported as having an ask price of 85, paying...

A coupon bond paying semiannual interest is reported as having an ask price of 85, paying on the 1st of January and July. If today is Feb. 5th, and the annual coupon rate is 4%, what is the invoice price? Round to the nearest penny.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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 98% of its $1,000 par value. If the last interest payment was made 50 days ago, and this interest period has 183 days, and the coupon rate is 4.27%, what is the invoice price of the bond?
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 100.0625. 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:_____
Essentials of Investments- Bodie, Kane and Marcus. 1. A government bond pays a semiannual coupon at...
Essentials of Investments- Bodie, Kane and Marcus. 1. A government bond pays a semiannual coupon at 8% and makes payments on January 7 and July 7 of each year. The WSJ reports an ask price for this bond on January 22 of $ 1003,125. What is the invoice price (invoice Price) of the bond if the period between coupon and coupon is 182 days?
Consider a bond paying a coupon rate of 6% annually when the market rate is 3.25%...
Consider a bond paying a coupon rate of 6% annually when the market rate is 3.25% per half-year. The bond has four years until maturity. Find the bond’s price today. Round to the nearest penny
Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds...
Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds of similar risk are 10.2%. The bond has a face value of $1,000. Based on this​ information, the coupon rate of the bond​ is: ​(Select the best choice​ below.) A. The coupon rate of the bond is 9.2% B. The coupon rate of the bond is 8.7% C. The coupon rate of the bond is 11.2% D.The coupon rate of the bond is 10.2%....
A. You own a bond with the following features:               Face value of $1000, Coupon rate...
A. You own a bond with the following features:               Face value of $1000, Coupon rate of 5% (annual) 8 years to maturity. The bond is callable after 4 years with the call price of $1,058. If the market interest rate is 4.17% in 4 years when the bond can be called, if the firm calls the bond, how much will it save or lose by calling the bond? State your answer to the nearest penny (e.g., 84.25). If there...
A. Bond Features Maturity (years) = 10 Face Value = $1,000 Starting Interest Rate 4.98% Coupon...
A. Bond Features Maturity (years) = 10 Face Value = $1,000 Starting Interest Rate 4.98% Coupon Rate = 4% Coupon dates (Annual) If interest rates change from 4.98% to 6.58% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 3 ? State your answer to the nearest penny (e.g., 48.45) If there is a loss, state your answer with a negative sign (e.g., -52.30) B. Bond Features Maturity...
What is the price of a bond with the following features? Face Value = $1,000 Coupon...
What is the price of a bond with the following features? Face Value = $1,000 Coupon Rate = 4% (stated as an ANNUAL rate) Semiannual coupon payments Maturity = 5 years YTM = 4.48% (Stated as an APR) State your answer to the nearest penny (e.g., 984.25)
1.What is the price of a bond with the following features? Face Value = $1,000 Coupon...
1.What is the price of a bond with the following features? Face Value = $1,000 Coupon Rate = 7% (stated as an ANNUAL rate) Semiannual coupon payments Maturity = 7 years YTM = 6.34% (Stated as an APR) State your answer to the nearest penny (e.g., 984.25) 2. You own a bond with the following features:               Face value of $1000,               Coupon rate of 4% (annual)               11 years to maturity. The bond is callable after 7 years with...
1. What is the price of a bond with the following features? Face Value  = $1,000 Coupon...
1. What is the price of a bond with the following features? Face Value  = $1,000 Coupon Rate = 7% (stated as an ANNUAL rate) Semiannual coupon payments Maturity = 7 years YTM = 6.34% (Stated as an APR) State your answer to the nearest penny (e.g., 984.25) 2. Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 5% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT