Suppose that a Treasury coupon security is purchased with settlement date on April 8 and that the last coupon payment was on February 15. Assume that the year in which this security is purchased is not a leap year.
1. How many days are in the accrued interest period?
2. If the coupon rate for this Treasury security is 7% and the par value of the issue purchased is $1 million, what is the accrued interest?