Interest built up since the last coupon date
Buy a bond mid-period and you pay the seller for the interest earned up to that day. You collect the full coupon next payment date, so it evens out. It sits on top of the quoted price, which makes the total you hand over larger than it looks.
Buying a 2% bond half a year in means paying 1% extra on top.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.