A term used to describe interest that is considered to be paid, even through no interest payment has been made.

Imputed interest is calculated based on the actual payments that are to be, but have not yet been, paid. This interest is important for discount bonds and other securities that are sold below face value and mature at par. The IRS uses an accretive method for calculating the imputed interest on Treasury bonds, which are taxed yearly, even though no interest is paid until maturity.