Accrued interest on bonds and debentures
This query is : Resolved
05 January 2025
what is meaning of accrued interest on purchasing /selling bonds and debentures
05 January 2025
Accrued interest is the interest that has been earned but not yet paid on a bond or debenture. Accrued interest is typically calculated from the last interest payment date to the settlement date of the transaction. The buyer and seller must agree on the accrued interest amount, which is usually calculated based on the bond's coupon rate and the number of days since the last interest payment.
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