A $10,000 Bond Pays Semi-Annual Coupons at J₂ = 10

A $10,000 bond pays semi-annual coupons at j₂ = 10% every January 5 and July 5.It is purchased on February 5,2010 to yield j₂ = 11%.The full (or dirty) price of the bond on February 5,2010 is $9578.38.Using the method that is most commonly used in practice,what would be the price of the bond on the coupon date,January 5,2010?

A) $9488.99
B) $9490.95
C) $9493.29
D) $9498.67

Correct Answer:

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