## Accrued Interest and Dirty Price - Mock Test-II, Q# 17.

anirban.dutta
Good Student
Posts: 14
Joined: Tue Feb 04, 2014 11:35 am
Location: Kolkata

### Accrued Interest and Dirty Price - Mock Test-II, Q# 17.

Suppose that it is April 4, 2011 and there is a bond with 9% coupon maturing on July 20, 2015 with a quoted price of 90-16 or \$90.50. The most recent coupon date is January 20, 2011, and the next coupon date is July 20, 2011. It is a bond with \$100 face value. Calculate the accrued interest since the last coupon date and the dirty price per \$100 face value for the bond.

Options:
A. \$2.09 and \$102.09
B. \$2.09 and \$92.59
C. \$1.84 and \$101.84
D. \$1.84 and \$92.34

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

### Accrued Interest and Dirty Price - Mock Test-II, Q# 17.

Days between January 20 and April 4 is 74; between January 20 and July 20 is 181. Accrued interest on April 4 is (74/181)*\$4.5 = \$1.84; dirty price = 90.50 + 1.84 = \$92.34

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