Consider a Corporate Bond with a $1000 Face Value,10% Coupon

question 14

Multiple Choice

Consider a corporate bond with a $1000 face value,10% coupon with semiannual coupon payments,5 years until maturity,and currently is selling for (has a cash price of) $1,113.80.The next coupon payment will be made in 63 days and there are 182 days in the current coupon period.The clean price for this bond is closest to:

• A) $1146.50
• B) $1065.70
• C) $1113.80
• D) $1081.10