What is the 3.14% APY incentive coupon?

When purchasing a bond mid-coupon period, the buyer pays the already accrued interest (AI) on the bond to compensate the seller for their holding period – as the buyer is then entitled to the full coupon amount on its next scheduled payment date – and this is a zero sum item given that the AI paid is immediately accrued to the bond position and account value in the meantime…

ForecastEx Forecast contracts are offered at zero-commission at Interactive Brokers. ForecastEx charges a fee of 0.01 per contract.

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The Interest Accruals section shows interest accruals for each currency held and are converted to your base currency using the conversion rates in effect at the time of the transaction. Interest is paid and charged once a month after each month's close. We accrue interest daily during the month. When interest is actually posted to the account, the daily accruals are reversed. Interest accruals are a balance sheet item and are included in the Net Asset Value (NAV) in Base Currency section of the statement. …

Yes, ForecastEx contracts pay an incentive coupon based on the closing market value of the positions. The incentive coupon accrues daily and is paid monthly. Incentive coupons are currently paid at the IBKR Pro USD benchmark rate minus 50 bps. To view the current rate please reference the…