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You purchase a bond with an invoice price of $1,043. The bond has a coupon rate of 4.7
percent, semiannual coupons, a par value of $1,000, and there are 5 months to the next
coupon date. What is the clean price of the bond? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)

Respuesta :

Answer:

Clean price of the bond = $1,039.08

Explanation:

Given:

Invoice price = $1,043

Par value = $1,000

Number of month = 5

Coupon rate = 4.7%

Find:

Clean price of the bond

Computation:

Interest accrued = [1,000][4.7%][1/12]

Interest accrued = $3.92

Clean price of the bond = $1,043 - $3.92

Clean price of the bond = $1,039.08

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