Question

You are buying a bond at a clean price of $1,140. The bond has a face value of $1,000, a coupon rate of 3.8 percent, and pays interest semiannually. The next coupon payment is one month from now. What is the dirty price of this bond? O $1,000.00 O $1,146.67 O $1,155.83 O $1,176.67 O $1,180.00

Answer 1

Ans $ 1,155.83

Clean Price	1140
Face Value	1000
Interest	3.80%
Interest for 5 month =	Face Value * Interest* Time
	1000 * 3.8% * 5/12
	15.83333333
Dirty Price =	Clean Price + Accrued Interest
	1140 +15.83
	$ 1155.83