You Purchase a Bond with an Invoice Price of $1,120

question 95

Multiple Choice

You purchase a bond with an invoice price of $1,120.The bond has a coupon rate of 8.5 percent,semiannual coupons,and there are three months to the next coupon date.What is the clean price of the bond?

• A)$1,086.35
• B)$1,098.75
• C)$1,105.20
• D)$1,132.50
• E)$1,157.50

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Definitions:

Sulfuric Acid

A highly corrosive strong mineral acid with the molecular formula H2SO4, widely used in industry.

Sulfonium Salt

A type of ionic compound that contains a positively charged sulfonium ion (a sulfur atom covalently bonded to three organic groups) and a counter anion.

Mechanistic Path

The sequence of elementary steps that lead to the formation of products from reactants, delineating the specifics of a chemical reaction.

Reagents

Additives or chemical entities added to a system aimed at causing a chemical reaction or to examine the possibility of a reaction occurring.