The face value of a Tata Steel Bond is $50,000 and pays a coupon of 8%....

The face value of a Tata Steel Bond is $50,000 and pays a coupon of 8%. Coupons are paid every 270 days and 90 days have passed since the last coupon payment. The accrued interest is $__________? (Round to two decimal places)

Expert Solution

Accrued interest rate = (Face Value of bond * coupon rate/100)* Days passed since last payment / 270

Accured interest = $50000*8/100*90/270

Accrued interest = $1333.33

jeff jeffy answered 2 years ago

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