Xyz debenturesissue date: 8-1-xxpayment dates: j 1 & j 1maturity date: 7-1-xxsome years after issuance, a customer buys 10 debentures in a regular way trade on thursday, october 12th. the customer will owe the seller: . 103 days of accrued interestb. 105 days of accrued interestc. 106 days of accrued interestd. 107 days of accrued interest

B. 105 days of accrued interest

Explanation:

The purchase on Thursday, October 12th will settle on Monday, October 16th - 2 business days after trade date.  

Accrued interest on corporate bonds is based on a 30days per month/360 day year.

And interest starts accruing from the day of the last interest payment, up to, but not including, settlement.

See below for day calculation

July  30 days

August  30 days

September30 days

October  15 days (up to but excluding settlement)

Total  105 days

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.