A 9% coupon bond with an ask price of 100:00 pays interest every 182 days. If the bond paid interest 112 days ago, the invoice price of the bond would be

Question

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The invoice price of the bond is calculated by adding the accrued interest to the ask price. The accrued interest is calculated as (Coupon Rate/2) * (Days since last payment/Days in period). For this bond, the accrued interest is (0.09/2) * (112/182) * 1000 = $27.69. Adding this to the ask price of $1,000 gives an invoice price of $1,027.69.

A 9% Coupon Bond with an Ask Price of 100:00