Answer: $3693
Explanation:
The clean price of this bond will be calculated as follows:
Invoice price of bond = $3714
Accrued interest = $3000 x 4.2% × ½) × 2/6
= $3000 × 0.042 × 0.5 × 2/6
= $21
Therefore, the clean price of the bond will then be:
= Invoice price - Accrued interest
= $3714 - $21
= $3693
Therefore, the the clean price of the bond is $3693.
