If a $15,000, 8 percent, 20-year bond was issued at 95 on November 1, how much will accrued interest payable be on December 31 if interest payments are made annually? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

Accrued interest = (Face value x Coupon rate x Days accrued) / 365= (15,000 x 0.08 x 61) / 365= $200

If a $15,000, 8 Percent, 20-Year Bond Was Issued at 95