The bond has a coupon rate of 6.05 percent, it makes semiannual payments, and there are 5 months to the next coupon payment. A clean price of $971 and the par value is $1,000. What is the invoice price

Invoice price = Clean price + Accrued interest = $977 + $20.37 = $997.37

Explanation:

The statement given in the question that "interest is paid semi-annually (i. e. every 6 months) and there are 2 months to the next coupon payment" means that the earlier coupon payment was done 4 months ago (i. e. 6 months - 2 months), thus, the accumulated interest will be for 4 months (6 months - 2 months)

Accrued interest = Par value * coupon rate * months from the earlier coupon payment / 12 = $1,000 * 6.11% * 4 / 12 = $20.37

Invoice price = Clean price + Accrued interest = $977 + $20.37 = $997.37