accretion discount
Definition
Accounting entry made to adjust the book value of a bond purchased at a discount (below its par value). Accretion is determined either through the 'straight line method' (accretion increase at a fixed rate) or by the 'constant interest method' (accretion accelerates as the maturity date approaches).
accretion discount is in the Accounting & Auditing, Banking, Commerce & Finance and Securities & Futures Trading subjects.
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