A 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 one month 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.
A. $1,087.50.
$1,080 + $7.5 (accrued interest) = $1,087.50.
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