The calculation for accrued interest on US government securities uses an actual calendar year and each month contains the actual number of days. Keep in mind that interest accrues up to, but not including, settlement date and, because US government securities settle on the next business day, interest accrues only up to the trade date.


An investor purchases 10M 8% US Treasury bonds due January 1st 2030 on Monday

April 1st for regular way settlement. How much accrued interest will the investor owe?

(10,000 x 8%) X (91 /365) =

800 X .2493 = $199.44

To determine the number of days in the above calculation we used the actual calendar days in each month as follows:


31 days


28 days


31 days


1 day


91 days

If the trade had been executed on Friday April 1st the calculation would look like this:

(10,000 x 8%) X (93 /365) =

800 X .2547 = $203.83

Interest continues to accrue on weekends even though weekends are not good settlement dates.


30 days


30 days


30 days


3 days


93 days

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