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Caloulate the Invoice Price of the Elm Corp
Caloulate the Invoice Price of the Elm Corp.'s Corporate Bond given the following information INPUT Face Value Trading Price Trading Date Coupon Rate Coupon Payment Days Frequency - 1,000 99.000 Wednesday, January 16 7.257 Mar 31, Sep 30 2 ANSWERS Price = Invoice Price = Current Yield = Question 4 114 points) Given the following data, calculate the YTM, all 4 years of YTC, YTW and Current Yield:
Expert Solution
Invoice price of a bond=clean price+accrued interest
Clean price is the market price or trading price
QUESTION ANSWER
Accrued interest=face value*coupon rate*(no of interest accrued days/365)
=1000*(7.25%)*(108/365)=21.45
So the invoice price=99000+21.45=99021.45
The clean price of the bond is not visible properly in the question.. im seeing it as 99000.if there is any change or mistake in the trading price or clean price, please add the interest accrued with the clean price
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