Consider Bond XYZ Coupon rate: 9,75% per year Yield to maturity: 11,4% per year Maturity date: 15 April 2046 Settlement date: 29 November 2021 The accrued interest is [1] R1,20205%. [2] R2,34537%. [3] R5,87781%. [4] R1,18207%. [5] none of the above answer Days to Last Coupon paid = 228 Days Rate for the full year = 9.75% Rate for 228 Days = 9.75%*228/365 = 6.0904% Hence option [5] none of the above is correct one is this answer right? and where did the 228 days come from?
Consider Bond XYZ Coupon rate: 9,75% per year Yield to maturity: 11,4% per year Maturity date: 15 April 2046 Settlement date: 29 November 2021 The accrued interest is [1] R1,20205%. [2] R2,34537%. [3] R5,87781%. [4] R1,18207%. [5] none of the above answer Days to Last Coupon paid = 228 Days Rate for the full year = 9.75% Rate for 228 Days = 9.75%*228/365 = 6.0904% Hence option [5] none of the above is correct one is this answer right? and where did the 228 days come from?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Consider Bond XYZ
Coupon rate: 9,75% per year
Yield to maturity: 11,4% per year
Maturity date: 15 April 2046
Settlement date: 29 November 2021
The accrued interest is
[1] R1,20205%.
[2] R2,34537%.
[3] R5,87781%.
[4] R1,18207%.
[5] none of the above
answer
Days to Last Coupon paid = 228 Days
Rate for the full year = 9.75%
Rate for 228 Days = 9.75%*228/365 =
6.0904%
Hence option [5] none of the above is correct one
is this answer right? and where did the 228 days come from?
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