Accrual bond

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An accrual bond is a fixed-interest bond that is issued at its face value and erepaid at the end of the maturity period together with the accrued interest. [1] However, another definition states that the interest periods maybe paid periodically. [2]

In Germany, the accrued interest is compounded. [3]

In contrast to zero-coupon bonds, accrual bonds have a clearly stated coupon rate.

See also

Wiktionary-logo-en-v2.svg The dictionary definition of Accrual bond at Wiktionary

References

  1. "Accrual bond Definition". Nasdaq. Retrieved 2025-02-27.
  2. Chen, James (2007-06-13). "Accrual Bond: What It Means, How It Works". Investopedia. Retrieved 2025-02-27.
  3. "Accrual bond". Gruppe Deutsche Börse. 2018-11-22. Retrieved 2025-02-27.