SIE practice questioneasyAccrued Interest
Corporate and municipal bonds calculate accrued interest on which basis?
- AActual/360
- B30/360 day count✓ Correct answer
- CActual/actual
- D30/365 day count
Explanation
Why B — 30/360 day count
Corporate and municipal bonds use a 30/360 day count to compute accrued interest. U.S. Treasuries use actual/actual.
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