A government bond with a coupon rate of 6% makes semiannual coupon payments on J

Question

A government bond with a coupon rate of 6% makes semiannual coupon payments on January 13 and July 13 of each year. The Wall Street Journal reports the asked price for the bond on January 28 at 100:13. What is the invoice price of the bond? The coupon period has 182 days. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

A government bond with a coupon rate of 6% makes semiannual coupon payments on January 13 and July 13 of each year. The Wall Street Journal reports the asked price for the bond on January 28 at 100:13. What is the invoice price of the bond? The coupon period has 182 days. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

Invoice price = Quoted price + Accrued interest

= 100 + 13/32 + 6/2*15/182

= 100.65

OR

price in absolute terms (Taking face value as 1000)

= 1000 * 100.65%

= 1006.50

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