1) Calculate the cash price of the following bond, sold on September 21: par = $1,000; coupon rate = 4 percent, paid on January 1 and July 1; quoted price = $955

The answer isnt 964.07

2) Which of the following statements is TRUE?

a) A bond purchaser must pay the bond seller the cash price less the accrued interest on the bond.

b) The quoted price of a bond is the actual price an investor pays for the bond whenever the bond is sold at a date other than the date of a coupon payment.

c) The quoted price of a bond is the actual price an investor pays for the bond when the bond is sold on the date of a coupon payment.

d) The cash price plus the accrued interest on the bond is the quoted price of the bond.