Accrual bond

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Accrual bond
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. In Germany, the accrued interest is compounded.
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Campbell R. Harvey's Hypertextual Finance DictionaryDownload this dictionary
Accrual bond
A bond on which interest accrues  but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.

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