A 5% coupon U.S. Treasury note pays interest on January 31 and July 31 and is traded for settlement on March 15. What is the accrued interest on the $200,000 face amount of this note? A. 1,000.15 B. 1,194.44 C. 2,000.25 D. 2,500.85

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 27E
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A 5% coupon U.S. Treasury note pays interest on January 31 and July 31 and is
traded for settlement on March 15. What is the accrued interest on the $200,000 face
amount of this note?
A. 1,000.15
B. 1,194.44
C. 2,000.25
D. 2,500.85
Transcribed Image Text:A 5% coupon U.S. Treasury note pays interest on January 31 and July 31 and is traded for settlement on March 15. What is the accrued interest on the $200,000 face amount of this note? A. 1,000.15 B. 1,194.44 C. 2,000.25 D. 2,500.85
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