Asked by Mo Cain Jumaah on May 14, 2024
Verified
A $1,000 bond, with interest at 8 ½% on January 1 and July 1, was sold on September 4 at 103 plus accrued interest. Compute the dollar amount of the sale the seller received. (Assume a 360-day year and a commission of $5 per bond.)
360-Day Year
An accounting convention that uses 360 days in a year for calculating interest on loans and other financial instruments.
Commission
A service charge assessed by a broker or agent for providing assistance in the execution of a transaction.
- Compute the sale proceeds of a bond including accrued interest and commission deductions.
Verified Answer
BC
Learning Objectives
- Compute the sale proceeds of a bond including accrued interest and commission deductions.