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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?


To: Chip McVickar who wrote (2334)2/11/2002 1:14:17 PM
From: OX  Read Replies (2) | Respond to of 12411
 
and speaking of bonds...

Chip, John or anyone...

here's a simple question, yet I'm unable to figure it out...

I've traded equity futures and cash bonds, but can someone tell me how accrued interest is handled w/ BOND FUTURES?

I've looked on the web and a couple of books, but no one gets into the mechanics of it (only the mechanics of physical delivery).

If I buy one 30yr bond (USH2 for example) and sell it in 30 days, how is accrued interest in that bond contract paid? (or is it built into the price, which seems the most likely from what little I can tell)

thanks.