Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment

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Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment is on December 1. The par amount purchased on the bond is $100,000, and its annual coupon rate is 4% paid semiannually.

a. What is the accrued interest using the 30/360 day count convention?

b. What is the accrued interest using the actual/actual day count convention?

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Bond Markets Analysis And Strategies

ISBN: 9780253337535

10th Edition

Authors: Frank J. Fabozzi, Francesco A. Fabozzi

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Question Posted: Jan 21, 2024 12:03 PM

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Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment

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a To calculate the accrued interest using the 30360 day count convention we first need to determine ...View the full answer

Bond Markets Analysis And Strategies

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