Time Pattern of Bond Prices in Practice
		§ Coupons are paid semi-annually.  Hence the bond price would increase at the required rate of return between coupon dates. § On the coupon payment date, the bond price would drop by an amount equal to the coupon payment. § To prevent changes in the quoted price in the absence of yield changes, the price quoted excludes the amount of the accrued coupon. § Example: An 8% coupon bond quoted at 96 5/32 on March 31, 1996 would actually require payment of 961.5625 + 0.5(80/2) = $981.5625