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You initiated a transaction to purchase a 3.750% semiannual coupon 20-year Corporate Bond on Tuesday Jun...

You initiated a transaction to purchase a 3.750% semiannual coupon 20-year Corporate Bond on Tuesday Jun 27 , 2017. The maturity date of the bond is 11/15/2032 and its yield to maturity is 3.600%. What is the accrued interest on the bond on the settlement date, in % of PAR?

0.43750

0.44792

0.45833

0.46875

  1. You initiated a transaction to purchase a 3.750% semiannual coupon 20-year Corporate Bond on Tuesday Jun 27 , 2017. The maturity date of the bond is 11/15/2032 and its yield to maturity is 3.600%. What is the clean price of the bond on the settlement date in % of PAR?

    101.750

    101.756

    102.100

    102.154
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Answer #1

1. Accrued interest = Coupon Rate * 1/2 * Difference Between last coupon Date and Settlement date / Days between coupon dates

Accrued interest = 3.750% * 1/2 * 42 / 180

Accrued interest = 0.43750 Option A

2. Option B 101.756

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