You purchase a bond with an invoice price of $1,060. The bond has a coupon rate of

Question:

You purchase a bond with an invoice price of $1,060. The bond has a coupon rate of 9.2 percent, semiannual coupons, and there are five months to the next coupon date. What is the clean price of the bond?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...