maggielong5067 maggielong5067

04-03-2020
Social Studies

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A new issue corporate bond with dated date of May 1st is bought from the underwriter with settlement occurring on Wednesday, May 27th. How many days of accrued interest is owed the underwriter

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temmydbrain temmydbrain

07-03-2020

Answer:

26

Explanation:

The Accrued interest on corporate bonds is calculated on the principle of a 30 days month/360 days year. And interest is expected to start accruing from the morning of the last payment of interest, up to, but not involving settlement.

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