Wilson Corp. issued $9,000,000 of 4% bonds on April 1 at par value. The bonds were dated January 1. The company pays interest on June 30 and December 31 each year. How much will the buyer need to pay the company in accrued interest at purchase and how much will the buyer receive in interest on June 30?

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The buyer needs to pay accrued interest from January 1 to April 1, which is 3 months of interest: $9,000,000 * 4% * (3/12) = $90,000. On June 30, the buyer receives 6 months of interest: $9,000,000 * 4% * (6/12) = $180,000.