An interest-bearing investment is sold mid-way through the year. At the time of sale, how is the accrued interest typically treated? The purchaser pays the seller an amount equal to the accrued interest since the last payment date At the next interest payment date, the original issuer (investee) splits the interest payments amongst anyone who held the investment over the period. The original issuer (investee) must settle the interest owing before the sale can be completed. The seller forfeits the right to any interest payment, and loses on the investment sale