interest accrual

interest accrual
Interest earned but not yet paid on a bond. When a bond is sold, the purchaser will have to compensate the seller for interest accrued up to the date of sale. This is achieved by means of adding on an interest accrual to the clean price being quoted in the market, to give the dirty price payable by the purchaser. Dresdner Kleinwort Wasserstein financial glossary
See also clean price and dirty price. Dresdner Kleinwort Wasserstein financial glossary

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interest accrual UK US noun [U] FINANCE
interest that is owed on borrowed money or earned on an investment in a particular period: »

Failure to pay the first installment on time results in an interest accrual of 1% a month.


Financial and business terms. 2012.

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