Accrued Interest is the total amount of coupon interest that accumulates daily while you hold an FR Bond.

When you buy an FR Bond, you need to pay the Accrued Interest from the last coupon payment date (or from the bond’s issue date) up to the purchase date. This amount is added to the total cost of the bond, on top of its principal price.

On the other hand, when you sell the FR Bond, you will receive the Accrued Interest calculated from the last coupon payment date to the sale date. So, in addition to receiving the bond sale amount, you will also get the extra amount from the Accrued Interest.