Question

You purchase a bond with an invoice price of $1,009. The bond has a coupon rate of 5.39 percent, it makes semiannual payments, and there are 5 months to the next coupon payment. The par value is $1,000. What is the clean price of the bond?

a. 1035.95

b. 982.05

c.1013.49

d.1004.51

e. 986.54

Answer 1

let me know if you need any clarification--

clean price =	=1109-((5.39%*1000)/2)*1/6
clean price =	1104.51
Therefore answer = option d		1104.51