Accrued Interest

Business / Finance / 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.)

Other Words for Interest

Interest Adjective Synonyms: concern, significance, importance, weight, moment, note, consequence
Interest Noun Synonyms: attention, attentiveness, concern, regard, curiosity, scrutiny, notice, engagement
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Compound Interest

Business / Accounting / Compound Interest: Interest credited daily, monthly, quarterly, semi-annually, or annually on both principal and previously credited interest. MORE

And Interest

Business / Finance / And Interest: An indication that the buyer will receive accrued interest in addition to the price quoted for a bond. MORE

Interest-Only Strip (IO)

Business / Finance / Interest-Only Strip (IO): A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the MORE

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