Fixed Income
Accrued Interest
Definition
What is Accrued Interest?
Interest earned since the last coupon date but not yet paid.
Example in practice
How This Looks in Practice
A buyer compensates the seller for interest accrued between coupon dates.
Keep learning
Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.