Aivree is buying a $1,000 face value bond at a quoted price of 99.486.The bond carries a coupon rate of 5.6 percent,with interest paid semiannually.The next interest payment is four months from today.What is the clean price of this bond?

Question

Quizplus · Accepted Answer

The clean price of a bond is its quoted price, which in this case is 99.486% of its face value. Therefore, the clean price is 99.486% of $1,000, which equals $994.86.

Aivree Is Buying a $1,000 Face Value Bond at a Quoted