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Assume you bought $1000 of the bond below on October 7/2015.
As of 6-Oct-2015
1. When was the last coupon paid before your purchase?
2. What is the convention to count days for this bond?
3. What would be the accrued interest you paid when you bought it?
4. What was the quote price for the amount you paid?
5. What was the total (invoice) price you paid for the full amount you bought of this bond?
1. The last coupon was paid on 01/October/2015, considering it has a semi-annual coupon paying bond.
2. Day count convention for this bond is 30/360 as it is for corporate bonds in US
3. Accrued interest will be for 6 days as it was purchased on 7th October. 3% of $100 for 6 days ie $3*6/180= $0.1 accrued interest per bond. Assuming 10 bonds are purchased, so total accrued interest is $0.1*10= $1
4.The quote price is the clean price of the bond. The bond have accrued interest of $0.1 and the price paid is $104.76 so the quote price is $104.76- $0.1= $104.66.
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