Asked by Chris James on Apr 26, 2024
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A $1,000 bond, with interest at 9 ½% on March 1 and September 1, was purchased on November 23. Compute the number of days for which accrued interest will be paid.
Accrued Interest
Interest earned from the last payment date to the purchase date.
Interest Rate
The percentage at which interest is charged or paid on a loan or investment over a specified period.
- Understand the concept of accrued interest in bond transactions.
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Learning Objectives
- Understand the concept of accrued interest in bond transactions.