Municipal and Corporation Bonds Terms, Customs and Usages: A Reference Book for the Investor, an Banker (Classic Reprint)

Interest payable semi-annaally. A pril andO ctober. AB ond. Used when securities are divided into classes, such as A bond, Bbond. (S ee -P referred Stock. )A coottntant. See A uditor. Accrued I nterest. One of the most oommon expressions in connection with investment dealings, and one very frequently not clearly understood. Let us take, for example, a $1,000 bond bearing 4% interest, or, in otner words, paying the holder $40 yearly. The interest is payable January 1st and July 1st. each year; $20 at each time. This interest will not be paid before it is due; that is, in the month of June the interest due July 1st cannot be collected; but. suppose Maria Jones had held the bond in her possession until the first of June, she would, therefore, be entitled to the interest upon her money at the rave of 4% annually from January 1st last, at which time she received the interest then due. Therefore, if Maria Jones wishes to sell this bond to Henry Drake at a price, say, of par and accrued interest. she would receive from him $1,000 the principal simi of the bond and also the interest upon the $1,000 from Januaiy I st to June 1st. or nve months, at the rate of 4% per annum.
(Typographical errors above are due to OCR software and don't occur in the book.)

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