Aliquot Interest Yield

The aliquot interest yield is a part of the nominal yield which pertaining to the bond holder for the period from the bond issue or from the last coupon payment calculated until the transaction settlement date. Aliquot interest yield is added automatically to the bond price and can be positive or negative. For a client buying a bond, a positive aliquot interest yield means compensation that he has to pay when s/he becomes entitled to the whole coupon without holding the bond all the time. For a client buying a bond, a negative aliquot interest yield represents compensation for the period when the bond is held without entitlement to the coupon.