When Markie sold his bond after 336 days, how much accrued interest did he earn?

To determine the accrued interest earned from the sale of a bond, one must first understand the basis for calculating interest on bonds. Bonds typically pay interest semiannually, and this interest is calculated based on the face value of the bond, the coupon rate, and the time period for which the interest is being earned.

Given that Markie sold his bond after 336 days, we first convert the time period into years. There are typically 365 days in a year, so 336 days can be expressed as approximately 0.92 years (336/365 ≈ 0.92).

Next, to calculate accrued interest, you would multiply the bond's face value by the coupon rate and then multiply by the time period in years. If, for instance, we assume the bond has a face value of $1,000 and a coupon rate of 8%, the annual interest would be $80 ($1,000 x 0.08). The interest earned over 336 days would then be calculated as follows:

Accrued Interest = Face Value x Coupon Rate x (Number of Days Held / 365)

Accrued Interest = $1,000 x 0.08 x (336/365) ≈ $73.