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On July 1, 2012 You Purchase a $10,000 Par T-Note

Question 27

Multiple Choice

On July 1, 2012 you purchase a $10,000 par T-Note that matures in 5 years. The coupon rate is 8% and the price quote is 98:6. The last coupon payment was May 1, 2012 and the next payment is November 1, 2012 (184 days total) . The accrued interest is


A) $132.61.
B) $101.00.
C) $50.54.
D) $40.65.
E) $35.67. ((8%/2) x 10,000) x (61 days since last coupon/184) = $132.61

Correct Answer:

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