A $1,000 bond, with interest at 9% on January 1 and July 1, was sold on March 20 at 109 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.)

Accrued Interest

Accrued interest refers to the interest that has accumulated on a bond or loan since the last interest payment was made.

360-Day Year

A financial concept that simplifies the calculation of interest over periods when the actual number of days in a year is considered to be 360.

Commission

A fee or percentage of a transaction paid to an agent or employee for facilitating or completing a sale.