An investor sells a bond at the quoted price of$98
An investor sells a bond at the quoted price of
$98.00. In addition he receives accrued interest of $4.40. The clean price of the bond is:
A. Par value plus accrued interest.
B. accrued interest plus agreed upon bond price.
C. agreed upon bond price excluding accrued interest.
参考解答
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2024-11-14 23:56:45
Ans:C;
Accrued interest: when a bond trades between coupon dates, the seller is entitled to receive any interest earned from the previous coupon date through the date of the sale. This is known as accrued interest.
The total amount that the buyer pays to the seller of the bond (full price) is the clean price plus any accrued interest:
Full price = Clean price + Accrued interest
Therefore C is the correct choice because the agreed upon price without the accrued interest is the clean price.
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