You purchase 30 bonds with a coupon rate of 6.125% and a current market price of 91.5. The commission charge is $12.50 per bond. The date of the transaction is October 1, and the bond pays interest on January 1 and July 1. What is your total purchase price?

You purchase 30 bonds with a coupon rate of 6.125% and a current market price of 91.5. The commission charge is $12.50 per bond. The date of the transaction is October 1, and the bond pays interest on January 1 and July 1. What is your total purchase price?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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