Question

Suppose a bond with $100 par value is purchased between coupon periods. The days between the...

Suppose a bond with $100 par value is purchased between coupon periods. The days between the settlement date and the next coupon date is 115. There are 183 days in the coupon period. Suppose that this bond has a coupon rate of 7.4% and there are 10 semiannual coupon payments remaining. Assume a 5.6% discount rate. The dirty price for this bond is closest to:

A.

$107.76

B.

$106.80

C.

$109.13

D.

$100

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