Heres a simplified example:lets say you cash your bond and are supposed to receive redemption proceeds in theamount of $1,000. the bond pays $120 in interest per year or $10 per month. if youredeem your bond with 2 months left in the interest rate cycle, you would receive theredemption proceeds ($1,000) less the amount of remaining interest to be paidbetween now and november 1 ($20) for a total of $980.then, on november 1, you would receive a full year interest payment of $120.the total you receive: $1,000 - $20 + $120 = $1,100youll notice the total received is the redemption proceeds ($1,000) plus 10 monthsworth of interest ($100).