Compute approximate accrued interest on a semiannual 4.375% coupon bond settlement on June 27 when last coupon was May 15 and next coupon on Nov 15 using actual/actual day count: days since last coupon = 43 and coupon = 4.375% annual. What is AI per 100 par?
Explanation
Use actual days between coupon dates for actual/actual AI calculation then multiply by periodic coupon PMT.
Other questions
A 5-year fixed-rate bond with semiannual coupons has a stated coupon of 4.0% and the market's required semiannual discount rate is 2.5% per period. Which statement is correct about the bond's price at issuance?
Which of the following is the correct formula for accrued interest between coupon dates using a conventional day count approach?
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Which spreadsheet function computes the price (clean) of a bond given settlement and maturity dates, coupon rate, yield, redemption, frequency, and basis?
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Which of these best describes matrix pricing?
A bond with face 100 pays semiannual coupons of 3% per annum (1.5 per period). If the semiannual market discount rate increases from 1.6% to 2.0%, what happens to the bond price?
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Which of the following is the correct interpretation of yield-to-worst for a callable bond?
A newly issued 7-year non-callable bond with semiannual coupons of 3% per annum is priced using spot rates. Which statement about the spot curve is correct?
Which of these best describes the Z-spread?
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Which of the following is true about matrix pricing interpolation when estimating a three-year yield from two-year and five-year comparable bond yields?
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Which statement about bond convexity is correct?
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Which of the following is true about matrix pricing when comparable bonds are scarce?
A floating-rate note (FRN) pays MRR + quoted margin QM. At a reset date the market required margin (discount margin DM) is greater than QM. What is the expected price behavior of the FRN at that reset?
Which of the following measures is the yield spread over a government bond of the same maturity (single tenor)?
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An analyst observes a bond with Z-spread of 27 bps over the government spot curve. Which of the following interpretations is most accurate?
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Which of the following best describes the current yield on a bond?
Which of the following is an effect of a bond being issued 'at par' at initial issuance?
Which statement about zero-coupon (strip) bonds is true?
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Which of the following statements about negative yields-to-maturity is correct?
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