Moji is considering investing in a Manulife Financial corporate bond with a $20 000 face value maturing on December 15, 2030 The bond 's coupon or bond rate is 7 25 percent and interest is paid semi annually The current required market rate or yield for a bond of this type is 4 55 percent Use the b...

Since this settlement date is between interest payment dates the next coupon payment must be prorate ...

Moji is considering investing in a Manulife Financial corporate bond with a $20 000 face value maturing

Question:

Moji is considering investing in a Manulife Financial corporate bond with a $20 000 maturing on December 15, 2030. The bond's or bond rate is 7.25 percent and interest is paid semi-annually. The current required market rate or yield for a bond of this type is 4.55 percent. Use the bond function of the Texas Instrument BAII PLUS calculator to determine the purchase price of the bond on July 22, 2018.
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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...