When the Interest Payment Dates of a Bond Are May

question 46

Multiple Choice

When the interest payment dates of a bond are May 31 and November 30,and a bond issue is sold on July 1,the amount of cash received by the issuer will be:

• A) Decreased by accrued interest from July 1 to November 30.
• B) Decreased by accrued interest from May 31 to July 1.
• C) Increased by accrued interest from May 31 to July 1.
• D) Increased by accrued interest from July 1 to November 30.
• E) Unaffected by accrued interest.

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Definitions:

Progesterone

A hormone associated with feelings of closeness to others.

Testosterone

A hormone that is much higher in men than in women.

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics in the human body.

Serotonin

A neurotransmitter in the brain playing key roles in mood regulation, sleep, and digestion, among other functions.