FINRA Series 7 – General Securities Representative — Question 1

Bubba Corporation issued bonds that pay interest on January 15 and July 15 each year until maturity. An investor purchasing these bonds on Monday, April 12, must pay the contract price plus accrued interest for:

Answer options

• A. 87 days
• B. 89 days
• C. 93 days
• D. 90 days

Correct answer: D

Explanation

The investor must pay accrued interest from the last interest payment date, January 15, to the purchase date, April 12. This totals 90 days of accrued interest, making option D the correct answer, while the other options do not accurately reflect the number of days calculated.