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Accrued Interest

The interest due on a bond or other fixed income security since the last interest payment was made. The buyer of a bond pays the market price plus accrued interest.



The cost of borrowing money. Because bonds represent a loan to a company, they receive interest, while stocks represent ownership and so only receive a share of earnings.


Interest Rate

Another important economic indicator. The price, calculated as a percentage of the money loaned, that banks are charging borrowers for the use of the banks' money.