ACCRUED INTEREST Definition

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

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BACK-TO-BACK TRADING allows securities dealers to trade and settle the same securities several times during the same settlement day without loss of value days.

COUPON is: 1) The annual interest rate on a fixed income security, set at the time it was issued, at which that instru­ment will accrue and pay interest. 2) Small pieces of paper attached to nonregistered interest-bearing instru­ments that reflect the semiannual amounts of interest to be paid. These coupons are cut out and tendered on the appropriate coupon dates, and the interest is then paid.

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