wikiHow Bond Accrued Interest Glossary Accrued Interest: The amount of interest that has accumulated on a bond since its last interest payment date. Coupon Rate: The annual interest rate stated on a bond. Face Value: The amount of money that will be paid to the bondholder at maturity. Days in the Year: The number of days in a year that the bond pays interest. This is typically 365 days, but it may be different depending on the bond. Days since Last Interest Payment Date: The number of days between the last interest payment date and the settlement date of the bond. Settlement Date: The date on which a bond transaction is settled, and ownership of the bond is transferred from the seller to the buyer. Dirty Price: The price of a bond that includes accrued interest. Clean Price: The price of a bond that does not include accrued interest. Accrual Basis: The method used to calculate the amount of interest that has accrued on a bond since its last interest payment date. Actual/Actual (A/A) Basis: A method of accrual basis that calculates accrued interest based on the actual number of days in a year and the actual number of days between interest payment dates. 30/360 Basis: A method of accrual basis that assumes there are 30 days in every month and 360 days in a year, regardless of the actual number of days in each month. Yield to Maturity: The rate of return anticipated on a bond if it is held until maturity, and all interest payments and the face value are received. Page