It is now March 1, 2013, and Peter has just purchased a five-year U.S. government bond (FV = $1,000) with a quoted price of 93.863. This bond has a 5-percent coupon rate, and the last semi-annual coupon payment was made on January 1, 2013.
a. How much will Peter actually pay for this bond?
b. Had this been a Canadian government bond, what would be the cash price?