An investor is interested in purchasing a $60,000 bond that is quoted at q = 102.75.You are given the accrued interest is $513.50.What is the full (dirty)price of this bond?

Question

Quizplus · Accepted Answer

The full (dirty) price of the bond is calculated by adding the quoted price (clean price) to the accrued interest. The quoted price is 102.75% of the face value, so: $60,000 * 102.75% = $61,650. The full price is then $61,650 + $513.50 = $62,163.50.

An Investor Is Interested in Purchasing a $60,000 Bond That