When the Interest Payment Dates of a Bond Are May

question 114

Multiple Choice

When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be

• A) decreased by accrued interest from June 1 to November 1.
• B) decreased by accrued interest from May 1 to June 1.
• C) increased by accrued interest from June 1 to November 1.
• D) increased by accrued interest from May 1 to June 1.

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Definitions:

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in the sector.

Herfindahl Index

An indicator of company sizes within an industry, showing the level of competitive interaction among them.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at preventing monopolies and unfair business practices that may hinder competition.