Accrual bond
From Wikipedia, the free encyclopedia
An accrual bond is a fixed-interest bond that is issued at its face value and repaid 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.
