A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on January 30 at 100.2500. What is the invoice price of the bond

$1,005

Explanation:

The computation of the invoice price of the bond is shown below:

Here we assume the par value be $1,000

Now the invoice price is

= Ask price + Coupon payment × days as last coupon payment ÷ days separate coupon payment

= $1,000 × 100.25 + $1,000 × 7% ÷ 2 × 15 days ÷ 182 days

= $1,002.50 + 2.88461

= $1,005

reducing the scale of the market for a new product.

answer the amount a seller is paid minus the cost of production;