When a bond is sold between coupon payment dates,the buyer pays the seller for the accrued interest.

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Accrued interest is the interest that has been earned on a bond since the last coupon payment date. If a bond is sold between coupon payment dates, the buyer must compensate the seller for the accrued interest that has been earned up to the date of sale. This is typically calculated on a per-day basis and added to the selling price of the bond.

When a Bond Is Sold Between Coupon Payment Dates,the Buyer