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Stub period

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Stub period

In finance, in particular with reference to bonds and swaps, a stub period is a period of time over which interest accrues which is not equal to the usual interval between bond coupon.

These normally occur because the interval between coupons does not fit neatly into the period that the bond was issued for, thus sometimes a bond's final or first coupon period may be adjusted to make the bond start and mature on the desired dates.

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