Question

On July 1, 2017, Markie purchased a ten-year $10,000 bond. The bond has a stated interest rate of 4%, payable annually on July 1. On June 2, 2018, 336 days from the last interest payment, Markie sold the bond. The selling price includes how much accrued interest?(A) $32(B) $368(C) $400(D) $768

Answer 1

Answer:

Interest will be $368

So option (B) will be correct answer

Explanation:

We have given Markle purchased a ten year $10000 bond

So price of bond = $10000

Rate of interest = 4 %

Time = 336 days

We know that 1 year = 365 days

So $336days=\frac{336}{365}=0.9205year$

So interest will be equal to $interest=\frac{price\times rate\ of\ interest\times time}{100}=\frac{10000\times 4\times 0.9205}{100}= 368$

So option (B) will be correct answer