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Accrual bond - Financial definition

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Synonym:  z-bond

Concise definition of the term accrual bond

An accrual bond is a bond, generally issued at par, on which interest accrues and is paid at maturity rather than being paid out periodically.

Comprehensive definition of the term accrual bond

Accrual bonds are similar to zero-coupon bonds, but unlike the latter, they do have a clearly stated coupon rate.

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