A Coupon Bond Is Reported as Having an Ask Price

question 53

Multiple Choice

A coupon bond is reported as having an ask price of 108% of the $1,000 par value in the Wall Street Journal.If the last interest payment was made one month ago and the coupon rate is 9%,the invoice price of the bond will be ____________.

• A)$1,087.50
• B)$1,110.10
• C)$1,150.00
• D)$1,160.25
• E)none of the above

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