Answer:
The bond’s quoted ("clean") price is $1,022.98
Explanation:
The computation of the bond quoted clean price is shown below:
Clean price is
= Dirty price - face value × coupon rate × number of months ÷ total number of months in a year
= $1,054.23 - $1,000 × 7.5% × 5 ÷ 12
= $1,054.23 - $31.25
= $1,022.98
Hence, the bond’s quoted ("clean") price is $1,022.98
We simply applied the above formula
