You Purchase a Bond with an Invoice Price of $1,460

question 92

Multiple Choice

You purchase a bond with an invoice price of $1,460. The bond has a coupon rate of 9.4 percent, and there are 3 months to the next semiannual coupon date. What is the clean price of this bond?

• A)$1,436.50
• B)$1,452.17
• C)$1,460.00
• D)$1,467.83
• E)$1,483.50

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Definitions:

Operating Income

Earnings generated from a company's regular business operations, excluding deductions of interest and taxes.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, resulting in a net profit or loss.

Month Ended

Refers to the closing of the accounting period, usually the last day of the month, where businesses summarize financial activities.

Unearned Revenue Account

Refers to money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.