A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.

Definition A bond that pays no coupons, is sold at a deep discount to its face value, and matures at its face value. An accrual bond has the important advantage of being free from reinvestment risk, t [..]

see bond

Often the last tranche in a CMO, the accrual bond or Z-tranche receives no cash payments for an extended period of time until the previous tranches are retired. While the other tranches are outstanding, the Z-tranche receives credit for periodic interest payments that increase its face value but are not paid out. When the other tranches are retired [..]

Interest accruing bond, wherein interest is not disbursed to investor at accrual time but it is paid at maturity along with bond principal.

Accrual bond refers to a bond from which no principal or interest payment is made until any bonds issued earlier have been fully paid. Here, interest is added to the principal balance of the bond and [..]

Often the last tranche in a CMO, the accrual bond or Z-tranche receives, no cash payments for an extended period of time until the previous tranches are retired. While the other tranches are outstandi [..]

Fixed-interest security that is issued at its face value and repaid at the end of the maturity period together with the accrued interest.

A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.

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.