An accounting procedure which adjusts the value of a bond purchased at a discount, such as a zero-coupon bond. The accretion of discount procedure adjusts the book value of the bond to the par value of the bond at maturity. It takes into account the interest paid out for the bond, which is accrued as non-cash payments during the life of the bond and only paid out at maturity.
Related information about accretion of discount:
- Accretion of Discount Definition | Investopedia
The increase in the value of a discounted instrument as time passes and it approaches maturity. The value of the instrument will accrete (grow) at the interest ...
- accretion of discount - Municipal Securities Rulemaking Board
ACCRETION OF DISCOUNT – An accounting process by which the book value of a security purchased at a discount from par is increased during the security's ...
- What is accretion of discount? definition and meaning
Definition of accretion of discount: An accounting procedure which adjusts the value of a bond purchased at a discount, such as a zero-coupon bond.
- Accretion of Discount - Financial Dictionary - The Free Dictionary
The increase in value of a security or other instrument as it approaches maturity. For example, suppose one buys a bond with a face value of $100 and pays $89.
- Accretion of Discount: Definition from Answers.com
Accretion of Discount Accounting process for adjusting the book value of a bond purchased at a discount (the Original Issue Discount ) to the Par Value.
- What is ACCRETION OF DISCOUNT - The Law Dictionary
Definition of ACCRETION OF DISCOUNT : The process of adjusting the BOOK VALUE of a BOND purchased at a DISCOUNT to reflect the effects of a noncash ...
- accretion of discount Definition | Business Dictionaries from ...
accounting process for adjusting the book value of a bond purchased at a discount (the Original Issue Discount ) to the par value at maturity. Accretion is, in ...
- The Accretion Method of Debt Discount | eHow.com
References. Municipal Securities Rulemaking Making Board; Accretion of Discount · U.S. Federal Trade Commission; Debt Collection FAQs. Photo Credit ...