what is a bond's accrued interest?multiple choice question.it is additional interest that the firm must pay if interest checks are mailed late.it is the difference between the coupon rate and market rate of interest.it is interest that has been received but not yet earned.it is interest that has been earned but not yet received by the current bondholder.

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Interest on a bond that has accrued but has not yet been paid to the current bondholder.

The interest that accumulates (accrues) every day between coupon payments is known as accrued interest. You will probably buy a bond between coupon payment dates if you sell it before it expires or purchases it on the secondary market.

It is determined by multiplying the principle amount by the interest rate, the number of days the debt is given or taken, and the number of days in a year. After that, the result is divided by 365.

The buyer of a bond pays the seller the accumulated interest; the issuer is not involved in the transaction. Bonds will always cost more than the listed price since the cumulative interest payment is added to the market price.

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