Answer:
$100
Explanation:
The computation of the clean price is shown below:
As we know that
Clean Price = Dirty Price − Accrued Interest
where,
Dirty price is
= Ask price + Accrued interest
The ask price is $100
And, the accrued interest is
= $100 × 9% × 112 days ÷ 360 days
= $2.74
Now the dirty price is
= $100 + $2.74
= $102.74
Therefore the clean price of the bond is
= $102.74 - $2.74
= $100
Or we can say that the ask price equivalent to the clean price of the bond as both are the quoted prices
