Question
The questions have the answers in bold, I just really want to know how to get to the answer without excel or a financial calculator.
The questions have the answers in bold, I just really want to know how to get to the answer without excel or a financial calculator. Thank you!
Jack and Jill Jones purchased of a one-thousand-dollar par value corporate bond that pays a three percent coupon. This bond is a long-term corporate bond with approximately seventeen years remaining until maturity. The bond price was equal to $975. They will pay for this bond and the accrued interest associated with this bond today. Coupon interest payments are made semi-annually. There are 183 days between the last semi-annual coupon interest payment and the next scheduled semi-annual coupon interest payment. The last semi-annual coupon interest payment was made 143 days ago. How much will Jack and Jill Jones pay in accrued interest?
- $11.72
- $10.72
- $12.72
- $13.72
6. Jack and Jill Jones purchased of a one-thousand-dollar par value corporate bond that pays a three percent coupon. This bond is a long-term corporate bond with approximately seventeen years remaining until maturity. The bond price was equal to $975. They will pay for this bond and the accrued interest associated with this bond today. Coupon interest payments are made semi-annually. There are 182 days between the last semi- annual coupon interest payment and the next scheduled semi-annual coupon interest payment. The last semi-annual coupon interest payment was made 37 days ago. How much will Jack and Jill Jones pay in accrued interest?
- $ 3.05
- $13.05
- $ 4.05
- $14.05
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