Financial Risk Manager Part 1

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Explanation:

For a Treasury bond, accrued interest is based on actual/actual day count.

So:

AI(T)=60\times\frac{59}{181}

For a corporate bond, accrued interest is usually based on 30/360:

So:

AI(Corp)=60\times\frac{60}{180}=20.0

Then:

AI(Corp)-AI(T)=20.0-60\times\frac{59}{181}\approx 0.442

So the increase in accrued interest is approximately $0.4420.

Correct answer: B.

Explanation:

For a Treasury bond, accrued interest is based on actual/actual day count.

So:

AI(T)=60\times\frac{59}{181}

For a corporate bond, accrued interest is usually based on 30/360:

So:

AI(Corp)=60\times\frac{60}{180}=20.0

Then:

AI(Corp)-AI(T)=20.0-60\times\frac{59}{181}\approx 0.442

So the increase in accrued interest is approximately $0.4420.

Correct answer: B.

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MManit

Last updated: April 18, 2026 at 11:32

Zero

25.0%

$0.4420

75.0%

$1.2970

$3.8020