A $1500 bond was purchased between bond coupon dates for a purchase price (full or dirty price)of $1457.98.The accrued interest on the date of sale was $71.80.What price is the bond quoted at per $100 (q)on the date of sale?

Question

Quizplus · Accepted Answer

The quoted price (clean price) is the full price minus the accrued interest. So, $1457.98 - $71.80 = $1386.18. The quoted price per $100 is then ($1386.18 / $1500) * 100 = 92.41.

A $1500 Bond Was Purchased Between Bond Coupon Dates for a Purchase