How is interest on Loan Securities calculated?

Interest on Loan Securities accrues on the unpaid principal amount of the Security from the issue date of the Security up to, but excluding, the due date of the Security.

The formula for the accrued interest is (Invested amount x (Annual interest rate/365) x Days of holding the instrument

Please note that for investments on the primary market the interest starts accruing on the issue date of the Security, whereas for investments on the secondary market - on the purchase date of the Security.

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