What Determines the Quoted Price of a Bond?

[sherim]

What is a quoted price of a bond?
Is it a clean price?

I think it is the present value of the face value of a bond, am I correct?

What is the quoted price of a bond that has 4.5 years until maturity? The face value of the bond is $5,000 and it has a coupon rate of 8.1% compounded semi-annually and a yield rate of 8.6% compounded semi-annually.

Here's what I did:
Using the formula of PV=FV(1 + i)^-n
5000(1 + 0.043)^-9
5000(0.068460682)
3,423.03

But given the multiple choice answers I have, I am wrong.
The choices were: 4908.32, 4888.32, 4898.32, 4998.32 or 4809.32

I would appreciate any help/insight. Thanks

 

[HallsofIvy]

What is a quoted price of a bond?
Is it a clean price?

I think it is the present value of the face value of a bond, am I correct?

What is the quoted price of a bond that has 4.5 years until maturity? The face value of the bond is $5,000 and it has a coupon rate of 8.1% compounded semi-annually and a yield rate of 8.6% compounded semi-annually.

Here's what I did:
Using the formula of PV=FV(1 + i)^-n
5000(1 + 0.043)^-9

0.081 divided by 2 is 0.0405, not 0.043.
But that still doesn't give any of your multiple choice answers. As to what formula you should use, I can't answer that. That is finance, not mathematics.

5000(0.068460682)
3,423.03

But given the multiple choice answers I have, I am wrong.
The choices were: 4908.32, 4888.32, 4898.32, 4998.32 or 4809.32

I would appreciate any help/insight. Thanks