The 4.5 percent, semiannual coupon bond issued by Tyler Rentals has a $1,000 face value and matures in 12 years. The bond is currently quoted at 98.7. What is the clean price of this bond if the next interest payment will occur 4 months from today?

Question

Quizplus · Accepted Answer

The clean price of a bond is its quoted price, which in this case is 98.7% of its face value. Since the face value is $1,000, the clean price is 0.987 * $1,000 = $987.00.

The 45 Percent, Semiannual Coupon Bond Issued by Tyler Rentals Has