Stub period
Bonds/swaps anomaly
In finance, in particular with reference to bonds and swaps, a stub period is a length of time over which interest accrues are not equal to the usual interval between bond coupons.[1]
These periods normally occur because the interval between coupons does not fit neatly into the period for which the bond was issued, thus sometimes a bond's final or first coupon period may be adjusted to make the bond start and mature on the desired dates.
References
- ^ "Stub Period".
External links
- Interest Calculations and the Impact of Stub Periods
- v
- t
- e