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Accrued Interest

  1. interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security at the time of sale the buyer pays the seller the bonds Price Plus accrued interest calculated by multiplying the coupon rate by the number of days that have elapsed since the last payment
  2.  accrued interest is also used in a real estate limited partnership when the seller of a building takes a lump sum in cash at the time of sale and gives a second mortgage for the remainder if the rental income from the building does not cover the mortgage payment the seller agrees to let the interest accrue until the building is sold to someone else accrued interest deals were curtailed by the 1984 Tax Act 

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