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You purchase a bond with a coupon rate of 6.25% and a par value value of $1,000. There are 53 days to the next semi-annual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount? a) $31.25. b) $9.10. c) $22.15. d) $62.50.

You purchase a bond with a coupon rate of 6.25% and a par value value of $1,000. There are 53 days to the next semi-annual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount? a) $31.25. b) $9.10. c) $22.15. d) $62.50.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You purchase a bond with a coupon rate of 6.25% and a par value value of $1,000. There are 53 days to the next semi-annual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount? a) $31.25. b) $9.10. c) $22.15. d) $62.50.
Transcribed Image Text:You purchase a bond with a coupon rate of 6.25% and a par value value of $1,000. There are 53 days to the next semi-annual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount? a) $31.25. b) $9.10. c) $22.15. d) $62.50.
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