When does a bond’s quoted or “flat” price equal its invoice price? a.At settlement date b.When...
When does a bond’s quoted or “flat” price equal its invoice price?
a.At settlement date
b.When it pays its coupon
c.When it is traded
d. December 31st
Homework Answers
When coupon is paid, there will be no accrued interest. Only accrued interest causes the difference between invoice price and clean price.
Hence, correct option is “b. When it pays its coupon”
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