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Disclaimer
Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.
The information contained in the Website is NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.
In the UK, Robeco Institutional Asset Management B.V. (“ROBECO”) only markets its funds to institutional clients and professional investors. Private investors seeking information about ROBECO should visit our corporate website www.robeco.com or contact their financial adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing these areas.
In the UK, ROBECO Funds has marketing approval for the funds listed on this website, all of which are UCITS funds. ROBECO is authorized by the AFM and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.
Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.
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Fixed income
Accrued interest
Accrued interest represents the interest that has accumulated on a bond or other debt instrument since the last interest payment date but has not yet been paid to the bondholder. It’s essentially the portion of interest that the bondholder has earned up to a specific date.
Here's how it works:
1. Interest payment schedule
Most bonds pay interest periodically, such as semiannually or annually. Between these payment dates, interest accrues daily based on the bond’s coupon rate.
2. Calculation for transactions
When a bond is sold between interest payment dates, the buyer owes the seller the accrued interest, as the seller owned the bond for part of the period and is entitled to that portion of interest earned. The bond price includes this accrued interest.
3. Importance in yield calculations
Accrued interest is critical in determining a bond's yield because it affects the bond's total purchase price and, consequently, the return for the investor.
In short, accrued interest is a mechanism that ensures fair compensation for the interest earned between payment dates whenever a bond changes hands.