FRM-FMP

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

FRM-FMP

Postby anbu.edu » Thu Mar 28, 2013 1:34 am

Which of the following statements regarding accrued interest is most accurate?

A) The bond is trading flat if the bond issuer is in default and the bond is trading without accrued interest.
B) The accrued interest is paid by the seller of the bond to the buyer (new owner) of the bond.
C) If the seller must pay the buyer accrued interest, the bond is said to be trading cum-par.
D) If the buyer must pay the seller the accrued interest, the bond is said to be trading ex-coupon.

Can you please explain the ans

content.pristine
Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

FRM-FMP

Postby content.pristine » Thu Mar 28, 2013 4:17 pm

Dear Anbu,
From now on, please be specific in your doubts.
1. What is the source of the question?
2. What is the answer?
3. Where exactly are you facing problems in this question?


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