What does accrued interest mean?

accrued interest meaning in Law Dictionary

the attention on a BOND or LOAN that has been acquired but not however compensated. Interest payable/receivable accumulates between COUPON repayment times; once a periodic interest repayment is manufactured, accrued interest reverts to zero and begins building on a daily basis before the next payment. Accrued interest of a hard and fast INCOME instrument are calculated via: where C could be the voucher, advertising may be the actual quantity of days which have elapsed considering that the final coupon, and n is wide range of days into the coupon period. See in addition CLEAN COST, DIRTY PRICE.ACCUMULATED DIVIDEND A DIVIDEND which has been announced, yet not yet compensated, to people holding COLLECTIVE FAVORED STOCK. No dividends tend to be payable to holders of POPULAR STOCK until gathered dividends are compensated. Since gathered dividends are contractually owed to investors, they're mirrored as a LIABILITY from the issuer

accrued interest meaning in Business Dictionary

Interest received yet not received (understood). Including, bonds usually pay interest every half a year, therefore interest accrues between one interest repayment and also the next. The customer of a bond will pay its market price and the interest received up to the settlement date.