SIE practice questioneasyAccrued interest
Accrued interest on most corporate bonds is calculated based on:
- AActual/actual day basis
- B30/360 day basis✓ Correct answer
- C365-day year
- D28/336 day basis
Explanation
Why B — 30/360 day basis
Most corporate bonds accrue interest on a 30/360 day basis. Government bonds typically use actual/actual. 365-day and 28/336 are not standard.
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