When bonds are sold at a discount between interest dates, the buyer ________.
A) pays no interest to the issuer
B) pays the issuer interest from the date on the bonds to the purchase date
C) receives interest from the issuer from the date on the bonds to the purchase date
D) receives a discount from the issuer for the loss of the interest before purchase

Question

Quizplus · Accepted Answer

When bonds are sold between interest dates, the buyer pays the issuer interest accrued from the last interest payment date to the purchase date.

When Bonds Are Sold at a Discount Between Interest Dates