Meaning ACCRUED INTEREST: 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.)
More terms such as Accrued interest in Dictionary A.
- Definition Amortizing Interest Rate Swap:
- Examples Swap in which the principal or notional amount rises (falls) as interest rates rise (decline accrued interest definition.
- Definition Affiliated Person:
- Examples An individual who possesses enough influence and control in a corporation as to be able to alter the actions of the corporation accrued interest explain.
- Definition AEX:
- Examples See: Amsterdam Exchange accrued interest what is.
- Definition Allotment:
- Examples The number of securities assigned to each of the participants in an underwriting syndicate accrued interest meaning.
- Definition Amman Financial Market (AFM):
- Examples Established in 1976, the AFM is the only stock exchange in Jordan accrued interest abbreviation.
