Page 16 - Chapter 23 - Interest

Solution – Incurral Of Interest Cont.

 Calculate the accrual amount

 Accrual amount = YTM x adjusted initial amount

2014: 600 000 x 18,56311% x 151/365 = R46 077

2015: 600 000 x 18,56311% x 214/365 = R65 302 +

(600 000+46 077+65 302) x 18,56311% x 151/365 =

R54 631

( 65 302 + 54 631)

= R119 933