Aivree Is Buying a $1,000 Face Value Bond at a Quoted

Multiple Choice

Aivree is buying a $1,000 face value bond at a quoted price of 99.486.The bond carries a coupon rate of 5.6 percent,with interest paid semiannually.The next interest payment is four months from today.What is the clean price of this bond?

A) $994.86
B) $1,004.19
C) $1,013.53
D) $987.21
E) $1,005.73