Question
1. Identify and explain the various day basis methods (i.e. 30/360, actual/actual, actual/360) of interest accrual and their effect on the cash flow and yield
1. Identify and explain the various "day basis" methods (i.e. 30/360, actual/actual, actual/360) of interest accrual and their effect on the cash flow and yield on an 8% security purchased at par on 1/01/92 and sold at par on 10/01/92.
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
