Answer:
$1,155.83
Explanation:
The computation of dirty price of this bond is shown below:-
Clean Price = $1,140
Face Value = $1,000
Interest = 3.80%
Interest for 5 month = Face Value × Interest × Time
$1,000 × 3.8% × 5 ÷ 12
$15.83
Dirty Price = Clean Price + Accrued Interest
= $1,140 + $15.83
= $1,155.83
Therefore for computing the dirty price of bond we simply add clean price with accrued interest.
