What is invoice price of the bond

Assignment Help Financial Management
Reference no: EM131526724

A coupon bond paying semiannual interest is reported as having an ask price of 109% of its $1,000 par value. The last interest payment was made 30 days ago and the coupon period has 182 days. If the coupon rate is 6%, what is the invoice price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Invoice price            $

Reference no: EM131526724

Questions Cloud

A revenue bond is backed by pledge of net revenues : A revenue bond is backed by a pledge of net revenues. This indicates that:
Bonds are currently selling at a conversion premium : The bonds are currently selling at a conversion premium of $45 over their conversion value.
Yield to maturity remains unchanged : what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?
At what forward rate is this arbitrage eliminated : At what forward rate is this arbitrage eliminated?
What is invoice price of the bond : A coupon bond paying semiannual interest is reported as having an ask price of 109% of its $1,000 par value. what is the invoice price of the bond?
One-year forward exchange rate : what must be the one-year forward exchange rate?
What is the relationship between financial leverage and risk : What is the impact of financial leverage on wealth creation? What is the relationship between financial leverage and risk? How does fed affect the stock market.
Total option premium using black-scholes-merton model : Given your choice in a) and your estimation for stock volatility 0.2. What is the total option premium using Black-Scholes-Merton model?
What is the internal rate of return if the initial cost : What is the internal rate of return if the initial cost of the project is $400,000?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the npv over the six years

Calculate the terminal value, assuming that cash flows after the sixth year grow at 2 percent annually in perpetuity, and then recalculate the NPV.

  Calculate the expected dividend yield-capital gains yield

Assume that it is now January 1, 2013. Wayne-Martin Electric Inc. (WME) has just developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 15% ..

  What debt and equity mix is the best mix and why

Independent of item 4, your company needs to raise capital to build an addition. The addition is 5% of your current total assets. What debt/equity mix is the best mix and why?  how long will it take for the project to be accepted?

  What is the trade weighted exchange rate of the us dollar

What is the trade-weighted exchange rate of the U.S. dollar? What explains the increase in the trade-weighted exchange rate of the U.S. dollar in the late 1990s and late 2000s?

  What is the initial outlay associated with the project

What is the initial outlay associated with this project? - What are the annual after-tax cash flows associated with this project for years 1 through 9?

  Calculate the average returns and the variances

Using the returns shown above, calculate the average returns, the variances, and the standard deviations for X and Y.

  What is the implied rate of return on this stock

A stock will pay a dividend of $4 at the end of the year. It sells today for $100 and is expected to sell in one year for $105. What is the implied rate of return on this stock?

  Managers should base pricing decisions on both cost and

1.managers should base pricing decisions on both cost and market factors. in addition they must also consider legal

  Statements regarding the taxation of insurance policies

All of the statements regarding the taxation of insurance policies are correct, except:

  Explain net present value and internal rate of return

Explain how a net present value (NPV) profile is used to compare projects. How does this compare to internal rate of return (IRR)? How does reinvestment affect NPV and IRR?

  Should the firm install the electric generator

A firm that purchases electric power from the local utility is considering the alternative of generating its own electricity. The current cost of obtaining the firm's electricity from its local utility is $42,000 per year. The cost of a steam generat..

  What rate would legally have to be quoted

A local finance company quotes an interest rate of 19.5 percent on one-year loans. So, if you borrow $46,000, the interest for the year will be $8,970. What rate would legally have to be quoted? What is the effective annual rate?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd