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Consider a 3-year bond with face value of 100 that pays a fixed coupon of 3 percent issued on March 15, 2005.
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Here is the same bond but using the ISDA convention.
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Here is the interest accrued before the first coupon payment.
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Compare this to
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This shows the interest accrued right after the first coupon payment.
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Here is the interest accrued two months after the first coupon payment.
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Compare accrued interest and the difference between the clean price and the dirty price of a bond.
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