Explanation:
The number of days between June 1 and December 1 is 183 (29, 31, 31, 30, 31, 30, 1 in June, July, August, September, October, November, and December, respectively).
The number of days between June 1 and July 31 is 60 (29, 31 in June and July, respectively). The accrued interest is therefore:
(60/183) × 5 = 1.639
Q.4922 A Treasury bond pays coupons at the rate of 10% per year on June 1 and December 1. What is the accrued interest between June 1 and July 31 per USD 100 of face value (rounded to two decimal places)?
A
$1.64
B
$1.5
C
$1.62
D
$1.66
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