For Accrued Interest we have terms and definitions in 7 topics. The topics are Accounting, Finance, Financial, Investing, Mortgage, Refinance and Treasury.

Accrued Interest (Accounting)

is interest earned but not paid since the last due date.

Accrued Interest (Finance)

Applies mainly 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 bond's 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 semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.)

Accrued Interest (Financial)

Is the amount of interest which has accumulated since the last coupon interest payment. It is the amount of interest which the holder is entitled but is not due until the payment date. The buyer pays the seller of the bond the accrued interest. Is the amount of interest which has accumulated since the last coupon interest payment. It is the amount of interest which the holder is entitled but is not due until the payment date. The buyer pays the seller of the bond the accrued interest.

Accrued Interest (Investing)

When a bond or other fixed income security is sold, the buyer pays the seller the price of the bond plus accrued interest. To calculate the amount of accrued interest due to the seller, multiply the number of days that have elapsed since the last payment by the coupon rate. The recipient of the accrued interest is taxed at ordinary income rates.

The buyer's expenditure is only temporary. When the next interest payment on the bond is due, the purchaser will receive the entire amount. Part of the payment is for the current holder's status as a creditor and part restitution for the earlier payment to the former bondholder.

See Also: Coupon Rate

Accrued Interest (Mortgage)

Interest that is earned but not paid, adding to the amount owed. Same as Negative amortization.

Accrued Interest (Refinance)

Interest that has accumulated from one payment-due date to the next. Also, the total amount of interest paid on a loan over time

Accrued Interest (Treasury)

The amount of interest a Bill, Note, Bond, or TIPS earns before it is actually issued in your account.

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