Accreted Value

外汇网2021-06-19 23:56:39 63

The value, at any given time, of a multi-yearinstrument that accrues interest but does not pay that interest until maturity.The most well-known applications include zero-coupon bonds or cumulative pferred stock.

|||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.

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