Explanation:

To calculate accrued interest using the 30/360 day-count convention:

1. Bond details:

   • Coupon rate: 5% annual
   • Semi-annual coupon payment = 5% × $1,000 ÷ 2 = $25
   • Settlement date: February 5
   • Payment dates: May 31 and November 30

2. Determine the previous coupon date: Since settlement is on February 5, the previous coupon date was November 30 of the previous year.

3. Calculate days between November 30 and February 5 using 30/360 convention:

   • November: 30 days (from 30th to 30th = 0 days, but we count from 30th to end of month = 0 days in 30/360)
   • December: 30 days
   • January: 30 days
   • February: 5 days Total days = 0 + 30 + 30 + 5 = 65 days

4. Calculate days in coupon period: From November 30 to May 31:

   • November: 0 days (from 30th)
   • December: 30 days
   • January: 30 days
   • February: 30 days
   • March: 30 days
   • April: 30 days
   • May: 31 days (but in 30/360, May 31 is treated as 30 days) Total = 0 + 30 + 30 + 30 + 30 + 30 + 30 = 180 days

5. Calculate accrued interest: Accrued interest = (Days accrued ÷ Days in coupon period) × Coupon payment = (65 ÷ 180) × $25 = 0.361111... × $25 = $9.02778 ≈ $9.03

Therefore, the correct answer is A. $9.03.