When bonds are sold between interest dates,the interest collected when the bonds are sold is returned to investors on the next interest payment date.

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This is known as "accrued interest" and it is generally prorated based on the number of days between the last interest payment date and the date of sale. So, when the next interest payment date arrives, the accrued interest is paid out to the investor who owned the bond at the time of sale.

When Bonds Are Sold Between Interest Dates,the Interest Collected When