flat price and full price

[archived_user]

Not too clear on the readings…
When a person buys a bond between the coupon dates, do they pay the full price or do they pay the flat price?
Who gets the accured interest? The buyer or the seller? If a person pays the flat price, does the seller keep the accrued interest? if the person pays the full price, I assume the buyer keeps the accrued interest?

 

[archived_user]

125mph wrote: Not too clear on the readings…
When a person buys a bond between the coupon dates, do they pay the full price or do they pay the flat price?

The full price.

125mph wrote: Who gets the accured interest? The buyer or the seller?

The seller.

125mph wrote: If a person pays the flat price, does the seller keep the accrued interest? if the person pays the full price, I assume the buyer keeps the accrued interest?

The buyer pays the full price (not the flat price), so the seller receives (and keeps) the accrued interest.