The present value of any bond payable issued between interest-payment dates will include any interest accrued since the last interest payment date.

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The present value of a bond payable is calculated based on the future cash flows (interest payments and principal repayment) discounted back to their present value at the bond's yield rate, not including interest accrued since the last payment date. Accrued interest since the last interest payment is typically accounted for separately in the transaction between the buyer and seller of the bond.

The Present Value of Any Bond Payable Issued Between Interest-Payment