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Glossary Stock exchange / Term

Accrual Bond

A bond which is sold at a deep discount to its face value, and pays no coupons. Accrual bonds tend to be illiquid, and very sensitive to changes in interest rates. Although there is no actual cash flow of interest, the imputed interest on an accrual bond is taxable as it accrues under U.S. tax laws.

Permanent link Accrual Bond - Creation date 2021-07-18


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