# Accrued interest on a bond

Think we have to do this? I don’t think I have seen any questions on it yet but it was in the book.

Do you mean to calculate the interest expenses of a discount/premium bond?

I have seen one regarding the dirty and clean price and what was the accrued interest, but that was in schweser

getterdone Wrote: ------------------------------------------------------- > I have seen one regarding the dirty and clean > price and what was the accrued interest, but that > was in schweser If you refer to this… I have seen 3 or 4 questions on stalla

Like say you have a bond with a 6% coupon, you buy \$1,000,000. Semi annual coupon, maturity date is 12/15/10. Settlement date is 5/12/08. How much accrued do you owe? I made that up, hopefully it works out. And, to boot, who owes, buyer or seller?

amberpower Wrote: ------------------------------------------------------- > Like say you have a bond with a 6% coupon, you buy > \$1,000,000. Semi annual coupon, maturity date is > 12/15/10. Settlement date is 5/12/08. How much > accrued do you owe? > > I made that up, hopefully it works out. > > And, to boot, who owes, buyer or seller? I just found 3 or 4 questions asking to calculate the dirty and clean price.

Okay thanks.

amberpower Wrote: ------------------------------------------------------- > Like say you have a bond with a 6% coupon, you buy > \$1,000,000. Semi annual coupon, maturity date is > 12/15/10. Settlement date is 5/12/08. How much > accrued do you owe? > > I made that up, hopefully it works out. > > And, to boot, who owes, buyer or seller? 149/365*(60,000/2)=\$12,246.58 the buyer owes the seller accrued interest

I am getting 11,000. I used 180 days though.

Are you guys using the bond spreadsheet with TI BA?

I do map

quick and dirty:)

map1 Wrote: ------------------------------------------------------- > quick and dirty:) Indeed