Who pays the interest when bonds are bought and sold? Good question. The answer is that the seller receives accrued interest up to the time the bond is sold. The interest is paid by the buyer. The buyer then is "reimbursed," so to speak, when the bond pays the interest.
To understand more fully, let's go through a specific example., As a caveat, let me emphasize that I do not recommend that investors buy individual bonds. I believe individuals should participate in the bond market by buying low cost exchange traded funds such as AGG, BND, LQD, etc.
That being said, let's begin by looking at a specific bond. You should begin by going to your discount broker's site and looking at their inventory. An alternative is to go to zions bank. Click "investments," "zions direct," "bond store."
You come to: CLICK TO ENLARGE
Note how I filled in the boxes. You, of course, would fill them in to your specs.
Among the bonds that came up was the following: CLICK TO ENLARGE
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.