Series 53: 6.2.3.3.4. Interest Payment Claims: Bearer Bonds

6.2.3.3.4. Interest Payment Claims: Bearer Bonds

Most bonds trade “and interest,” which means that the purchase price includes any interest that has accrued on the bond from the time that the last interest payment was made until the day before the settlement date. With registered bonds, the buyer pays the seller the interest that has accrued thus far. Bearer bonds are somewhat different in that the seller sometimes keeps the coupon and pays the buyer the remaining intere