On July 1 2015 Megan purchased a tenyear 10000 bond The bond

On July 1, 2015, Megan purchased a ten-year $10,000 bond. The bond has a stated interest rate of 4%, payable annually on July 1. On June 1, 2016, 337 days from the last interest payment, Megan sold the bond. The selling price includes how much accrued interest?

Solution

Accrued Interest included in selling price = $10,000 x 4% x (11/12)

..................................................................= $367