Question
Julie owns an Ontario Hydro bond. But she does not want it anymore and arranges with her broker to sell this Ontario Hydro bond to
Julie owns an Ontario Hydro bond. But she does not want it anymore and arranges with her broker to sell this Ontario Hydro bond to Geraldo. The transaction takes place on October 15, 2020. Julie' broker also tells her that she is entitled to receive accrued interest as part of the sale? Why is this?
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Because Julie originally purchased the bond when it was first issued
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Because the sale took place between the coupon payments
Because the bond is trading at a premium and this acts as her compensation
Because by selling the bond she loses her right to receive any accrued interest
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