Reddit

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? | Financial Risk Manager Part 1 Quiz - LeetQuiz

Explanation:

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.

Comments (0)

No comments yet.

Financial Risk Manager Part 1

Get started today

Comments (0)

Get started today

Comments (0)

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?