accrued interest(1. The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer (unless the bond is in default). 2. Is the amount of interest which has accumulated since the last coupon interest payment. It is the amount of interest which the holder is entitled but is not due until the payment date. The buyer pays the seller of the bond the accrued interest. 3. The amount of interest accumulated between the most recent payment and the sale of a fixed-interest security. For most bonds, accrued interest must be added to the purchase price, but that amount will be recovered by the purchaser in the next interest payment. Found on encyclo.co.ukAlexander Demidov)
