Explore BrainMass

Explore BrainMass

    Actual accrued interest

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    4. An 8% coupon U.S. Treasury note pays interest on May 30 and November 30 and is
    traded for settlement on August 15. The accrued interest on the $100,000 face value of this note is _________. (Use actual/actual day-count convention)
    A. $491.80
    B. $800.00
    C. $983.61
    D. $1,661.20
    E. none of the above

    © BrainMass Inc. brainmass.com June 4, 2020, 12:01 am ad1c9bdddf
    https://brainmass.com/business/accounting/actual-accrued-interest-314747

    Solution Preview

    Since the payment of interest is made on May 30 and November 30, it means that the interest is paid twice a year. If you want to find interest for each period, you will have to divide $8,000 by 2.

    actual/actual accrued interest.
    4. An 8% coupon U.S. Treasury note pays interest on May 30 ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer how much is the accrued interest.

    $2.19

    ADVERTISEMENT