Corporate Bonds
A corporate bond pays 6% annual interest. The last coupon was paid on April 1, and the bond is sold on June 15. Using the 30/360 convention, what is the accrued interest?
Using 30/360: April (30 days) + May (30 days) + June 1-15 (15 days) = 75 days. Accrued interest = ($60 annual interest / 360) x 75 days = $0.1667 x 75 = $12.50.
Complete Analysis & Legal Rationale
Using 30/360: April (30 days) + May (30 days) + June 1-15 (15 days) = 75 days. Accrued interest = ($60 annual interest / 360) x 75 days = $0.1667 x 75 = $12.50.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.