The interest on a BOND or LOAN that has been earned but not yet paid. Interest payable/receivable accumulates between COUPON payment periods; once a periodic interest payment is made, accrued interest reverts to zero and begins building on a daily basis until the next payment. Accrued interest of a FIXED INCOME instrument can be computed via: where C is the coupon, AD is the actual number of days that have elapsed since the last coupon, and n is number of days in the coupon period. See also CLEAN PRICE, DIRTY PRICE.ACCUMULATED DIVIDEND A DIVIDEND that has been declared, but not yet paid, to investors holding CUMULATIVE PREFERRED STOCK. No dividends are payable to holders of COMMON STOCK until accumulated dividends have been paid. Since accumulated dividends are contractually owed to investors, they are reflected as a LIABILITY on the issuer