Accrued Interest

CFA Level I
#1

This is from Schweser A 6% US treasury security maturing 9/30/10 is quoted at a price of 97.625 on july 1. The bond pays interest semiannually on march 31 and sept 30. On july 1, the accrued interest on this bond would be? a) 14.92 b)29.84

#2

just by elimination - without any calculation - I believe answer is 29.84 on March 31 it paid out 60$.(coupon) now next payment of 60 is in 6 months on Sept 30. So on July 1st it should be pretty close to 30$ - so 29.84. 60 * (30+31+30)/180 = 30.33 (approx)

#3

more precise… 30+31+30 - Days till Jul 1 = 91 91 + 31+31+30 = 183 - days till Sep 30 60$ = Coupon Accrued Int = 60 * 91/183 = 29.84

#4

6% coupon paid semiannually - shouldnt periodic coupon be $30?? hence $14.92?

#5

my bad!

#6

Thanks for the help… how would you do that in the Calc???, I mean what should I plug in for the values?

#7

30+31+30 - Days till Jul 1 = 91 91 + 31+31+30 = 183 - days till Sep 30 30$ = Coupon Accrued Int = 30 * 91/183 = 14.92