ACCRUAL BOND Definition

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ACCRUAL BOND is a bond on which interest accrues, but is not paid out to the investor during the time of accrual; instead, the accrual interest is added to the amount of remaining principal and paid at maturity. Also known as an accretion bond or a Z-bond in a CMO issue. See Collateralized Mortgage Obligation.

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CONSUMMATE is to bring to completion or fruition; conclude, e.g., consummate a business transaction.

ACCRUED INTEREST is interest earned but not paid since the last due date.

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