Question
You buy a 7.25 % coupon, $ 5,000 par value bond at a price of 99%, 73 days into the interest period. If the broker's
You buy a 7.25 % coupon, $ 5,000 par value bond at a price of 99%, 73 days into the interest period. If the broker's commission is $ 40, how much does the trade cost you including accrued interest?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the total cost of the bond trade including accrued interest and the brokers commission ...
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Step: 2
Step: 3
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
