Final answer:
The buyer will pay the seller for 151 days of accrued interest if the bond is purchased on May 31st.
Step-by-step explanation:
The buyer will pay the seller for 151 days of accrued interest if the bond is purchased on May 31st.
There are 181 days between January 1st and July 1st, and since the purchase is made on May 31st, the buyer will receive interest for those 31 days.
On July 1st, the buyer will receive interest for the full 181 days.
Therefore, the total number of days of accrued interest will be 31 days + 181 days = 212 days.
However, the seller has already received interest for the days from January 1st to May 31st, which is 181 days.
Therefore, the buyer will only pay the seller for the remaining days of accrued interest: 212 days - 181 days = 31 days.