A $1000 bond with a redemption date of February 1, 2035 is purchased on October 7, 2021. The quoted price, q, is 104.25. The bond is redeemable at par and pays interest at j₂ = 11%.

What is the purchase price (full or dirty price) of the bond?

• A.

  $1022.47

• B.

  $1042.50

• C.

  $1062.53

• D.

  $1060.83