Final answer:
To calculate the invoice price of the bond, add the accrued interest to the ask price of the bond.
Step-by-step explanation:
To calculate the invoice price of a bond, we need to consider the accrued interest on the bond since the last payment date. In this case, the bond has an ask price of $1000 and paid interest 62 days ago. The bond pays interest every 182 days, so the time between the last payment and the current date is 62 days.
Since the bond has a 7.5% coupon rate, the daily interest rate is 7.5% divided by 182, which is approximately 0.0412%. The accrued interest on the bond is the daily interest rate multiplied by the number of days since the last payment, which is 0.0412% multiplied by 62, resulting in approximately 2.554%. Therefore, the invoice price of the bond will be the ask price of $1000 plus the accrued interest of 2.554%.