Question

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?

Answer #1

**The Invoice Price of the bond consist
of the ask price of the Bond and the Interest accrued for 50
Days**

Ask Price of the Bond = Face Value of the Bond x Percentage of Quote

= $1,000 x 983%

= $980.00

**Interest accrued for 50
Days**

Semiannual coupon amount = $21.35 [$1,000 x 4.27% x ½]

Therefore, the Interest accrued for 50 Days = Semi-annual coupon amount x (50 Days / 183 Days)

= $21.35 x (50 Days / 183 Days)

= $5.83

Therefore, The Invoice Price of the Bond = Ask Price of the Bond x Interest accrued for 50 Days

= $980.00 + $5.83

= $985.83

**“Hence, the Invoice Price of
the Bond will be $985.83”**

You are considering a coupon bond (par=$1,000) that pays
semi-annual interest with a coupon rate of 6%. The bond currently
has a bid price of 116.89 and an ask price of 117.00. If the last
interest payment was made 60 days ago, and there are 180 days
between the last interest payment and the next interest payment,
what is the invoice price of the bond?
A.
$1,180.0
B.
$1,170.0
C.
$1,190.6
D.
$1,168.9
You purchase a 10-year T-note which has...

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:_____

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.

Let us compute the price of a Chrysler bond recently listed in
the Wall Street Journal. The bonds have a 10% coupon rate, a $1,000
par value (maturity value), and mature in two years. Assume
semiannual compounding and that market rates of interest are
12%.

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?

High Country Marketing Corp. issues a corporate bond that has a
10-year maturity with a par value of $1,000 and pays interest
semiannually. The quoted coupon rate is 6%.
(a) If the required rate of return on this bond is 8% per year.
What should the issuing price be? (b) The bond is
callable in 3 years at 110% of par. What is the bond’s yield to
call? (c) Currently, the bond is having an ask price of
$998.91, and...

A bond with 10 years to maturity has an annual coupon rate of
4.1% and pays interest semiannually. Assume that today we are 57
days into the current 183-day coupon payment period, and the
required rate of return is 7.8%. What is the flat price that would
be quoted by a dealer on this bond, per $100 of par value? please
show the problem on excel. Thank you.

Question 1
a. A bond that pays interest semiannually is selling for 100% of
its $1,000 par value. The bond has a 4% coupon rate and paid a
coupon 1 month ago. What is this bond's invoice price?
b.A bond has a $1,000 par value,10 years to maturity, a 4.5%
coupon, and currently sells for $1,037. The bond pays coupons
semiannually. The bond is callable 3 years from today with a call
price of $1,020. What is this bond's yield...

10. Consider the following U.S. Treasury bond quotation from The
Wall Street
Journal. It is June 27, 2020. The bond has a $1,000 face value and
pays semiannual
coupons.
Maturity Coupon Bid Asked Chg AskedYld
06/27/2027 3.675 76.1625 ????? +0.18 8.000
(a) (3 points) How much will an investor receive if he/she sells
this T-bond?
(b) (4 points) Fill in the missing information for Asked?
Could you explain the question in detail with formula plz! I
don't understand others poster...

You are given the following information for a semi-annual
coupon payment bond:
Coupon rate: 2.5%, par value $1,000
Price quote: 98:14
Days since last coupon settlement: 73
Days separating coupon payments 182
What is the flat price of the bond?
How much is the accrued interest on the bond?
What is the full price of the bond?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 15 minutes ago

asked 18 minutes ago

asked 28 minutes ago

asked 32 minutes ago

asked 33 minutes ago

asked 38 minutes ago

asked 40 minutes ago

asked 46 minutes ago

asked 50 minutes ago

asked 51 minutes ago

asked 56 minutes ago