Accrued interest

For a bond the investment will accrue interest on a daily basis from the last coupon (interest) payment to the next coupon payment day when the full coupon will be paid. Essentially it is interest earned, but not yet paid since the beginning of an investment or coupon period. If an existing investor sells a bond halfway through a coupon period then the new investor will pay the seller the accrued interest up until the date of sale as part of the bond purchase consideration. The new investor would then receive the full coupon at the next coupon date if they are the registered holder at that time.

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