What is the accrued interest on an 8.0% semiannual coupon? The - ProProfs Discuss
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What is the accrued interest on an 8.0% semiannual coupon? The settlement date for a $1,000 PAR U.S. Treasury bond is March 5th, 2011. The last coupon was January 1st and the next coupon is July 1st.

This question is part of P1. Mock Exam B
Asked by Bionicturtle, Last updated: Apr 22, 2020

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bionicturtle

Bionicturtle

Answered Sep 16, 2018

$13.93

$13.93 The day count convention for a US Treasury bond is actual/actual. Days since last coupon = 31 Jan + 28 Feb + (5-1) March = 63 days Days in coupon period = 31 Jan + 28 Feb + 31 March + 30 April + 31 May + 30 Jun = 181 days Accrued Interest ($) = $1,000 8%/2 63/181 = $13.9227
 

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