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.
Accretion of Discount
| Banking Dictionary: Accretion of Discount |
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 | Deferred Interest (in banking) |
| Effective Rate (in banking) |
| Premium (in banking) |
 | What is the force responsible for accretion? Read answer... |
| Use accretion in a sentence? Read answer... |
| What are some problems with accretion theory? Read answer... |
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 | What is accretion Give me at least 4 examples of accretion as in accretion as the type of growth? |
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 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
Related answers
- What is accretion?
- What is the Accretion theory?
- What is In Situ Accretion?
- What is an Accreted Terrain?
- How are accretion discs made?
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- What is Accretion of discount on the sale of a bond?
- Is accretion of discounts on long term debt a cash flow?
- What are accreted terranes?
Mentioned in
- Deferred Interest (in banking)
- Effective Rate (in banking)
- Premium (in banking)
- Par Value (in banking)
- Yield (in banking)
- Federal Reserve System
