[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR306.35]

[Page 156]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 306_GENERAL REGULATIONS GOVERNING U.S. SECURITIES--Table of Contents
 
                           Subpart E_Interest
 
Sec.  306.35  Computation of interest.


    The interest on Treasury securities accrues and is payable on a 
semiannual basis unless otherwise provided in the circular offering them 
for sale or exchange. If the period of accrual is an exact 6 months, the 
interest accrual is an exact one-half year's interest without regard to 
the number of days in the period. If the period of accrual is less than 
an exact 6 months, the accrued interest is computed by determining the 
daily rate of accrual on the basis of the exact number of days in the 
full interest period and multiplying the daily rate by the exact number 
of days in the fractional period for which interest has actually 
accrued. A full interest period does not include the day as of which 
securities were issued or the day on which the last preceding interest 
became due, but does include the day on which the next succeeding 
interest payment is due. A fractional part of an interest period does 
not include the day as of which the securities were issued or the day on 
which the last preceding interest payment became due, but does include 
the day as of which the transaction terminating the accrual of interest 
is effected. The 29th of February in a leap year is included whenever it 
falls within either a full interest period or a fractional part 
thereof.\7\
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    \7\ The appendix to this subpart contains a complete explanation of 
the method of computing interest on a semiannual basis on Treasury 
bonds, notes, and certificates of indebtedness, and an outline of the 
method of computing the discount rates on Treasury bills. Also included 
are tables of computation of interest on semiannual and annual basis.
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