accrued interest means: The interest that accumulates between the last payment and the date of the bond’s sale. The buyer must pay the seller at the sale the bond price and “accumulated interest.” This is calculated by adding the coupon rate to the amount of time since the previous payment. A bondholder who receives 40 coupon payments semiannually will sell the bond for 10 to the seller as his share of any interest earned. (in Stock Market Dictionary)