How to find the invoice price of a bond? what is the exact formula? A 7.5% coupon
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Question:
How to find the invoice price of a bond? what is the exact formula?
A 7.5% coupon bond with an ask price of 100:00 pays interest every 182 days. If the bond paid interest 62 days ago, the invoice price of the bond would be
A.1,011.67
B.1,012.35
C.1,012.77
D.1,011.98
E.1,012.15
$1000 + [37.5*(62/182)] = $1012.77
where is the 37.5 from?
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