Accrued interest - Mainly applies to convertible securities. Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security. At the time of sale, the buyer pays the seller the bonds price plus accrued interest, calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment. (If a bondholder receives $40 in coupon payments per bond semi-annually and sells the bond one quarter of the way into the coupon period, the buyer pays the seller $10 as the latters proportion of interest earned.)
Accrued interest : mainly applies to convertible securities. interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security. at the time of sale, the buyer pays the seller the bonds price plus accrued interest, calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment. (if a bondholder receives $40 in coupon payments per bond semi-annually and sells the bond one quarter of the way into the coupon period, the buyer pays the seller $10 as the latters proportion of interest earned.)
Accrued interest