Asked by Kassandra McCray on Jun 20, 2024
Verified
A $1,000 bond, with interest at 8% on March 1 and September 1, was sold on July 8 at 92 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
Interest that has been incurred but not yet paid.
Interest Rate
The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.
Sale Received
Sale Received refers to the total amount of money obtained from the sale of goods or services before any deductions or returns.
- Familiarize oneself with the concept of accrued interest in bond transactions.
Verified Answer
JC
Learning Objectives
- Familiarize oneself with the concept of accrued interest in bond transactions.