A Semi-Annual Coupon Bond Is Reported as Having an Ask

A semi-annual coupon bond is reported as having an ask price of 108% of the $1,000 par value in the Wall Street Journal. If the last interest payment was made 30 days ago and the coupon rate is 9%, the invoice price of the bond will be

A) $1,087.50.
B) $1,110.10.
C) $1,150.00.
D) $1,160.25.
E) None of the options are correct.

Correct Answer:

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