# Accrued interest

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 Accrued interest
Sayed Arif

Student of BMS at RIZVI INSTITUTE OF MANAGEMENT AND STUDIES AND RESEARCH
Mumbai, Maharashtra

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Accrued interest - December 10th, 2013

what is Accrued interest ?discuss Accrued interest in detail?

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 (2 (permalink)) Asad Khan   Student of BMS at RIZVI INSTITUTE OF MANAGEMENT AND STUDIES AND RESEARCH Mumbai, Maharashtra Management Paradise Newbie   Status: Offline Posts: 111 Join Date: Dec 2013 Location: Mumbai, Maharashtra Re: Accrued interest - December 10th, 2013 Accrued interest is basically an accounting phenomenon which occurs due to the difference in timing of cash flows and the recognition of interest. This can be commonly seen in bonds, as they pay interest after a fixed interval say, six months whereas the interest is accrued on a day-to-day basis. The basic formula for finding the accrued interest is as follows: Formula: The major issue with the accrual of interest is the day convention used. Generally, a 30-day month and a 360-day year is used for corporate and municipal bonds whereas it is based on actual calendar days for Government bonds. Example Assume a bond with face value of Rs. 100 and interest rate of 10%u0025 pays semi-annual interest payments. Now, after 3 months, Accrued interest = 100 x (10%/2) x (3/6) = Rs. 2.5 Friends: (0)
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Rose Marry

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Re: Accrued interest - April 20th, 2016

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 Originally Posted by sayed123 what is Accrued interest ?discuss Accrued interest in detail?
hey buddy,

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