释义 |
accrued market discount Accrued market discountThe rise in the market value of a discount bond as it approaches maturity (when it is redeemable at par) and not because of falling market interest rates.Accretion of DiscountThe 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. Because one is guaranteed to receive $100 when the bond matures, its value gradually increases between the purchase date and maturity. This increase is called the accretion of discount.accrued market discount The gain in the value of a bond that occurs because the bond has been bought at a discount from face value. For example, a $1,000 par bond maturing in ten years and selling at $800 can be expected to rise gradually in price throughout its remaining life. The accrued market discount is the portion of any price rise caused by the gradual increase (as opposed to an increase caused by a fall in interest rates). |