A bond that does not pay periodic
interest payments. Interest is added to the principal balance of the
bond and is either paid at maturity or the bond begins to pay both
principal and interest based on the accrued principal and interest to
that point.
The bond is sold at a discount to its maturity value based on a financial calculation that will yield a specific amount. Savings bonds are an example of an accrual bond.
The bond is sold at a discount to its maturity value based on a financial calculation that will yield a specific amount. Savings bonds are an example of an accrual bond.
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