You purchase a bond with a par value of $1,000, a coupon rate of 7.1 percent, and

Question:

You purchase a bond with a par value of $1,000, a coupon rate of 7.1 percent, and a clean price of $992. If the next semiannual coupon payment is due in four months, what is the invoice price?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

Fantastic news! We've Found the answer you've been seeking!