Accrued Interest

interest, security, price, march, would

This is from Schweser

A 6% US treasury security maturing 9/30/10 is quoted at a price of 97.625 on july 1. The bond pays interest semiannually on march 31 and sept 30. On july 1, the accrued interest on this bond would be?

a) 14.92
b)29.84

lc26mizzou

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发表于 2011-7-11 19:42 | 只看该作者

just by elimination - without any calculation - I believe answer is 29.84

on March 31 it paid out 60$.(coupon)
now next payment of 60 is in 6 months on Sept 30.

So on July 1st it should be pretty close to 30$ - so 29.84.

60 * (30+31+30)/180 = 30.33 (approx)

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发表于 2011-7-11 19:43 | 只看该作者

more precise...

30+31+30 - Days till Jul 1 = 91
91 + 31+31+30 = 183 - days till Sep 30

60$ = Coupon
Accrued Int = 60 * 91/183
= 29.84

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jim8z3

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发表于 2011-7-11 19:43 | 只看该作者

6% coupon paid semiannually - shouldnt periodic coupon be $30?? hence $14.92?

Edited 1 time(s). Last edit at Sunday, November 21, 2010 at 06:44AM by oz001.

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