Calculating Accrued Interest on a Bond
Abdulla explains the fundamental concepts: day count conventions, accruals and accrued interest, as applied in bond markets.
Overview
The bond markets use day counts in order to reflect the correct amount of accrued interest. Bonds use one of several major market conventions to perform this task.
Key learning objectives:
Understand how bonds are traded and how they accrue interest
Summary
Expert
Abdulla Javeri
Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.
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