Thursday, December 15, 2011

What is the purchase price of fifteen columbia corporation bonds with a coupon rate of 7 3/4 and a current?

market price of 98? the commission charge is $8 per bond. the date of the transaction is march 1, and the bond pays interest on november 1 and may 1|||Price per bond = 98% of face of Bond, assume $1,000 + $8 fee + accrued interest from Nov 1 to March 1. Semi annual interest = $1,000 @ .0775 per year, or .03875, = 38.75. Accrue 4 mos, or 2/3, = $25.83. Total price per Bond = $980 + $8 + $25.83, or $1,013.83 x 15 bonds = $15,207.45

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