$1$

$3$ points

$[$Ch$\mathrm{.}6]$ A T$-$bond with a $$1,000$ par is quoted at $97$:$14$ bid, $97$:$15$ ask. The clean price for you to buy this bond is:

SC$.$

Bond price PV $=P^{**}{T}^{**}[\frac{1}{r}-\frac{1}{r^{**}(1+r{)}^N}]+F\frac{V}{(1+r{)}^N}$

$$974\mathrm{.}38$

$$975\mathrm{.}42$

$$974\mathrm{.}69$

$$975\mathrm{.}77$