An Invoice,with Payment Terms of 6/10,n/30,was Issued on April 28

question 88

Multiple Choice

An invoice,with payment terms of 6/10,n/30,was issued on April 28 for $230.00.If the payment was made on May 12,the amount of payment will be ________.(Round your answer to the nearest cent. )

• A)$230.00
• B)$207.00
• C)$216.20
• D)$224.00

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Definitions:

Coupon Rate

The interest rate stated on a bond when it's issued, which represents the annual interest payment made to bondholders.

Modified Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, adjusted for the bond's yield.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Duration

Duration measures a bond's sensitivity to interest rate changes, representing the weighted average time until a bond's cash flows are paid to the investor.