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Accrued Interest

Accrued interest is interest that has been earned or accumulated since the previous interest payment but has not yet been paid. It is particularly relevant to bonds and other interest bearing debt instruments.

Why it matters to you

When debt instruments are transferred between investors, accrued interest may affect the amount paid or received. Tokenizing a bond does not remove this part of bond economics, so investors need to understand how accrued interest is handled within the tokenized product.

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