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A 1000 face value, 8% coupon annual pay bond is issued on Feb. 28 at par. Calculate the accrued interest on the bond on 31
A 1000 face value, 8% coupon annual pay bond is issued on Feb. 28 at par.
Calculate the accrued interest on the bond on 31 My; accrued interest on 31 July, dirty price on the bond 31 May and the dirty price on 31 July. The first coupon will be paid on Feb. 28 of the next year. The bond is quoted on each of the following dates at clean prices noted:
31 May at $1080
31 July at $1110
A) 40, 66.67, 1100, 1143.33
B) 20, 33.33, 1100, 1143.33
C) 20, 33.33, 1120, 1143.33
D) 40, 66.67, 1120, 1143.33
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