 |
Definition of 'Accreted Value'
The value, at any given time, of a multi-year instrument that accrues interest but does not pay that interest until maturity. The most well-known applications include zero-coupon bonds or cumulative preferred stock.
|
 |
Investopedia explains 'Accreted Value'
Accreted value may not have any relationship to market value. For example, a 10-year, 10% zero-coupon bond with a final maturity of $100 will have an accreted value of perhaps $43.60 in year two. If current market interest rates fall, the fair market value of that bond will be higher than its accreted value; if rates rise, the value of the bond will be less than its accreted value.
|
Search results for 'Accreted Value'
-
http://www.investopedia.com/exam-guide/series-7/municipal-securities/muni-premium-discount-pricing.asp
... Discounts are accreted on an annual basis, but are not taxable until sale or redemption. However; the difference between the discounted price and par value is ...
-
http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/other-types-of-bonds.asp
... upon redemption, sometimes referred to as phantom income or accreted interest, is ... are great investments for people who need the exact redemption value on a ...
|
|