When Markie sold the bond on June 2, 2017, what amount of accrued interest was included in the selling price?

To determine the amount of accrued interest Markie included in the selling price of the bond on June 2, 2017, we first need to understand how accrued interest is calculated for bonds. Accrued interest is the interest that has accumulated on the bond from the last interest payment date up to the date of sale.

Typically, bonds pay interest semi-annually, so if we assume this bond pays interest every six months, we would start by identifying the bond's coupon rate and when the last interest payment was made.

Assuming the bond has a nominal value of $1,000 and an annual interest rate of 8%, the bond pays $80 annually or $40 every six months. If Markie sold the bond on June 2, 2017, we need to figure out how many days have passed since the last payment.

Assuming the last payment was made on May 1, we calculate the accrued interest from May 1 to June 2, which is 32 days. The daily interest amounts to $40 divided by 182 days (half a year), which comes out to approximately $0.22 per day. Over 32 days, this would result in around $7.04 in interest.