It is May 1.The quoted price of a bond with a 30/360 day count and 12% per annum coupon in the United States is 105.It has a face value of 100 and pays coupons on April 1 and October 1.What is the cash price? \
A) 106.00
B) 106.02
C) 105.98
D) 106.04

Question

Quizplus · Accepted Answer

The cash price is the quoted price plus accrued interest.There are 30 assumed days between April 1 and May 1 and 180 assumed days between April 1 and October 1.In this case the quoted price is 105 and the accrued interest is 0.06×100×30/180 = 1.00.The answer is therefore 106.00.

It Is May 1