How do I calculate accrued interest when a Callable REMIC tranche or Callable Passthrough Certificate (CPC) has been called?
The accrued interest calculation varies from deal to deal. Please consult the Offering Circular Supplement for calculation details. The Offering Circular Supplement will sometimes specify that when a bond is called the holders of the fixed-rate classes are entitled to accrued interest up to but not including the payment date. When this occurs, the accrued interest due to the holder of record is reflected as a higher coupon on the call date.
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