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BOND PRICING

Accrued Interest

Allocates coupon interest between seller and buyer at settlement.

Formula

AI = Coupon payment × Accrual fraction

Variables: Coupon payment; Accrual fraction under day-count convention

What it means

Allocates coupon interest between seller and buyer at settlement.

Example

If half of a coupon period has accrued on a 3-unit coupon, accrued interest is approximately 1.5 before convention adjustments.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.