Accretion discount

Accretion discount,

Definition of Accretion discount:

  1. 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).

Meaning of Accretion discount & Accretion discount Definition