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Accrued interest
The portion of the coupon that has built up since the last payment.
How to read the number
The buyer pays accrued interest to the seller on top of the price, so the real outlay exceeds the quoted figure.
When the metric lies
Also known as: accrued interest, aci, dirty price
Related terms
Next step in Bonds from scratch · glossary termYield to maturityThe yield on a bond assuming it is held to maturity and its coupons are reinvested.Read next →
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