Suppose that you are interested in buying a bond that pays interest semi-annually. It has an annual coupon of 7% with interest payable on April 15 and October 15. The bond accrued interest is determined using a 30/360 day street convention. If the bond is currently priced at $1,200, what is the invoice price for the bond using a settlement date of March 20?

Answer rating: 100% (QA)

To calculate the invoice price we need to take into account the accrued interest on the bond which i... View the full answer