A coupon bond that pays semiannual Interest is reported in the Wall Street Journal as having an ask pr 120% of its $1,000 par value. If the last interest payment was made 2 months ago and the coupon rate 6.30%, the invoice price of the bond will be O $1,200.00 $1,231.50 O $1,210.50 O $1,168.50

A coupon bond that pays semiannual Interest is reported in the Wall Street Journal as having an ask pr 120% of its $1,000 par value. If the last interest payment was made 2 months ago and the coupon rate 6.30%, the invoice price of the bond will be O $1,200.00 $1,231.50 O $1,210.50 O $1,168.50

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,175.00. The bond sells for $1,040.50. (Assume that the bond has just been issued.). What is it’s yield to maturity? Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
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