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Answer: $13.93
For a **U.S. Treasury bond**, accrued interest uses **actual/actual** day count. - Semiannual coupon = $1,000 × 8% / 2 = **$40** - Days accrued from Jan 1 to Mar 5, 2011 = **63** days - Days in coupon period from Jan 1 to Jul 1, 2011 = **181** days \[ \text{Accrued Interest} = 40 \times \frac{63}{181} = 13.93 \] So the correct answer is **$13.93**.
Author: Manit Arora
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Q-170.1. The settlement date for a $1,000 par U.S. Treasury bond is March 5th, 2011. The last coupon was January 1st and the next coupon is July 1st. What is the accrued interest on an 8.0% semiannual coupon?
A
$13.93
B
$14.00
C
$14.14
D
$14.22
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