Bond Settlement: Accrued Interest, Due-Bills, Claims, and Transfer Fees

What this video covers

• How the 30/360 day-count convention works for corporate bonds and why government securities use actual/actual instead
• Why accrued interest is added up to but not including the settlement date, and how cash trades shift that cutoff to the trade date
• The five-mils rounding rule for fractions of a cent in accrued-interest calculations
• When a due-bill is required versus when a due-bill check is used, and the distribution type that drives each instrument
• Why due-bills are not transferable or assignable by the purchaser, and what that means for customer rights
• What documentation a seller can demand before honoring a claim for a missed distribution: physical certificate, transfer-agent letter, or written statement with guarantee of indemnity
• Who pays the transfer agent's fee in every scenario: the party at whose instance the transfer is made, not a default buyer or seller rule