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Financial Dictionary

 

Atlantic Financial
Investment Word

Accrued Interest (Bonds)

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Accrued Interest is coupon interest accumulated on a bond or note since the last interest payment or, for a new issue the dated date of delivery. When you buy a bond between coupon payments, you are only entitled to the interest a bond earns after you buy it. When the coupon pays, you get back the full amount including the accrued interest you originally paid.

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