General Securities Sales Supervisor (Series 10) 2025 – 400 Free Practice Questions to Pass the Exam

When purchasing corporate bonds, the buyer is responsible for paying accrued interest to the seller from the last coupon payment date up to the settlement date of the trade.

To find the number of days of accrued interest payable for a purchase of corporate bonds settling on March 23rd, it's essential to know the last coupon payment date. Corporate bonds typically pay interest semi-annually, which means there are generally two coupon payments each year.

Assuming a hypothetical last payment date of January 15th for the purpose of this calculation (this could vary based on actual bond terms), the time from that date to March 23rd would be calculated as follows:

- January 15 to January 31: 16 days in January

- All of February: 28 days (or 29 in a leap year)

- All of March up to the 23rd: 23 days

Adding these together gives:

16 (January) + 28 (February) + 23 (March) = 67 days

If the last coupon payment occurred on a different date (like December 15 of the previous year), the total would then change. However, based on a typical timeline and considering industry practices, the calculation likely leads to a total close