The 5-Year Bond of XYZ Corp

Multiple Choice

The 5-year bond of XYZ Corp.has a bid quote of 131.2891 and an asked quote of 131.3047.Assume you purchase one of these bonds with a face value of $5,000 and a coupon rate of 7.4 percent,paid semiannually.The next interest payment will be paid two months from today.What will be your invoice price for this purchase?

A) $7,220.01
B) $6,690.68
C) $6,809.47
D) $7,001.32
E) $6,549.30