Final answer:
The number of days of accrued interest included in the settlement expense is 304.
Step-by-step explanation:
To calculate the number of accrued interest days, we need to determine the number of days between the trade date (August 15th) and the interest payment date (June 1st). We also need to consider any leap years that might occur between these dates.
August 15th to June 1st is a span of 289 days. However, we need to subtract any leap year days that might have occurred.
From August 15th to the end of the year, there are 138 days. In the following year, there are 151 days from January 1st to June 1st. This totals to 289 days.
Since there is no information given about leap years, we can assume that there are no leap years involved. Therefore, the number of accrued interest days will be 289 days.
However, since the bond pays interest on December 1st as well, we need to add an additional 15 days from June 1st to December 1st. This brings the total to 289 + 15 = 304 days.