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Financial Terms

Accrued Interest

Accrued Interest refers to the accumulated sum of interest that has been earned on an investment or debt obligation but has not been disbursed to the recipient yet. It represents the unpaid, accumulated interest that has been accrued over a certain period. This concept is widely used in financial markets, where the interest on a loan or bond may accrue daily, monthly, or even annually. Accrued Interest serves as an important factor in financial calculations, investment strategies, and accounting practices. It is crucial to accurately track and account for accrued interest to ensure proper financial reporting and transparency in monetary transactions.
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