bond-basics

Useful Life

An accounting estimate of the number of years it is likely for an asset to remain in service for the purpose of cost-effective revenue generation. The Internal Revenue Service (IRS) employs Useful Life for various purposes applicable to Tax-Exempt Bonds.

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Accrued Interest

The dollar amount of Interest due on a Bond, computed at that Bond’s Interest Rate, from the last Interest Payment Date to the date of calculation.