You have decided to sell a 5 percent semiannual coupon bond two months after the last coupon

Question:

You have decided to sell a 5 percent semiannual bond two months after the last payment. The bond is currently selling for $951.25. Answer the following questions about the bond:
a. What is the clean price of the bond?
b. What is the dirty (full) price of the bond?
c. Explain how the clean and dirty prices of the bond are relevant to the buyer of the bond.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...