You purchase a bond with a par value of $1,000 and an invoice price of $943. The
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You purchase a bond with a par value of $1,000 and an invoice price of $943. The bond has a coupon rate of 6.4 percent and there are two months to the next semiannual coupon date. What is the clean price of the bond?
CouponA 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,...
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Accrued interest is the coupon payment for the period ti...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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