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