hard · Asset-Backed Securities regulatory
A $500,000,000 new-issue deal prices on June 15 with a settlement date (T+7) of June 22.
If the first monthly payment date for the bonds is July 20, how much interest will the investor receive on that first payment date?
- No interest, as the first payment is reserved to build overcollateralization.
- A full 30 days of interest, regardless of the settlement date.
- Interest accrued from the Pricing Date (June 15) to July 20.
- Interest accrued from June 22 to July 20.
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