Zerodha Bonds Accrued interest

Bond interest accrual on Zerodha

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Bonds accrue interest continuously between coupon payments. The accrued interest is included in the settlement price for trades that occur between coupons.

Formula

Accrued interest = Coupon rate x Face value x (Days since last coupon / Days in coupon period) / 2

For semi-annual bonds, divide by 2.

Example

7% G-Sec, Rs 100 face value, 60 days since last coupon (180-day half cycle):

Accrued = 7% x 100 x (60 / 180) / 2 = Rs 1.17 per Rs 100 face value

On buying

  • Clean price: Quoted price (what you see).
  • Dirty price: Clean + accrued (what you pay).

You pay accrued to compensate the seller, but recover it at the next coupon date.

On selling

Reverse: you receive clean + accrued. Buyer pays.

Console display

Console > Holdings > Bond tab shows accrued interest for each holding. Updated daily.

See also

External references

References

  1. RBI, Bond accrued interest convention, rbi.org.in.
  2. Zerodha, Bond P&L methodology, console.zerodha.com.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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