Business & farm

"all" bonds having accrued interest is not true. bonds bought on the original issue date will have none. However there are bonds traded in the flat. A flat bond is a bond priced without including any accrued interest owed to the bondholder, often referred to as its clean price. so most bonds bought/sold between interest payment dates will have accrued interest that belongs to the seller and thus reduces the purchaser's interest income 

View solution in original post