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 effect, a noncash payment of interest, reflecting interest earned while a bond is owned.
| Banking Dictionary: 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 at maturity. Accretion is, in effect, a noncash payment of interest, reflecting interest earned while a bond is owned.
| 5min Related Video: Accretion of Discount |
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