Accrued Interest

Interest that has been earned but not yet paid

REMARKS

Quoted separately from the "clean price"

The interest earned on a bond since the last coupon payment.

Accrued interest is the amount of interest that has been earned since the last interest payment date.

When a bond trades, the buyer pays the seller the accrued interest - a pro rata portion of the next interest payment, which will be paid to the buyer of the bond.

For debt securities such as bonds or swaps you need to calculate the amount of accrued interest.