If an issuer sells a bond at any other date than the interest payment date:
A)This means the bond sells at a premium.
B)This means the bond sells at a discount.
C)The issuing company will report a loss on the sale of the bond.
D)The issuing company will report a gain on the sale of the bond.
E)The buyer normally pays the issuer the purchase price plus any interest accrued since the last interest payment date.

Question

Quizplus · Accepted Answer

When a bond is sold between interest payment dates, the buyer pays the seller the purchase price plus accrued interest since the last payment date.

If an Issuer Sells a Bond at Any Other Date