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Suppose today is Oct 23, 2013. A bond with a 10% coupon paid semiannually every February 15 and August 15 is listed as selling at
Suppose today is Oct 23, 2013. A bond with a 10% coupon paid semiannually every February 15 and August 15 is listed as selling at an ask price of 102:11. If you buy the bond from a dealer today, what invoice price (dirty price) will you pay for it? The coupon period has 182 days. (The answer is Not 1051.87.)
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