Which of the following is true of accrued interest on bonds that are sold between interest dates?

Question

Quizplus · Accepted Answer

Accrued interest on bonds sold between interest dates is not computed at the effective market rate, nor is it paid to the seller when the bonds mature, and it is not considered extra income to the buyer. Instead, it is the interest that has accumulated since the last interest payment date and is paid by the buyer to the seller at the time of the bond transaction.

Which of the Following Is True of Accrued Interest on Bonds