Accrued Market Discount financial definition of Accrued Market Discount. Accrued Market Discount finance term by the Free Online Dictionary.

Accrued market discount

The rise in the market value of a discount bond as it approaches maturity (when it is redeemable at par) and not because of falling market interest rates.

Accretion of Discount

The increase in value of a security or other instrument as it approaches maturity. For example, suppose one buys a bond with a face value of $100 and pays $89. Because one is guaranteed to receive $100 when the bond matures, its value gradually increases between the purchase date and maturity. This increase is called the accretion of discount.

accrued market discount

The gain in the value of a bond that occurs because the bond has been bought at a discount from face value. For example, a $1,000 par bond maturing in ten years and selling at $800 can be expected to rise gradually in price throughout its remaining life. The accrued market discount is the portion of any price rise caused by the gradual increase (as opposed to an increase caused by a fall in interest rates).

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Accrued Discount	Amortization of Secondary Market TIPS Discount If TIPS are purchased in a secondary market at a price below their adjusted principal, the holder reports accrued market discount as ordinary interest income, either annually or when the bond matures or is sold. Tax planning for the use of TIPS at retirement by Toolson, Richard B. / The Tax Adviser However, the gain on the sale or redemption of market discount bonds acquired after April 30, 1993 is taxed as ordinary income to the extent of the accrued market discount. Tax aspects of municipal bonds by Fleming, Peter D. / Journal of Accountancy For a debt instrument without OID, the accrued market discount for a period is the total remaining discount multiplied by a fraction: stated interest paid during the accrual period divided by the total stated interest remaining to be paid as of the beginning of the period. Tax treatment of market discount bonds by Oberst, Timothy S. / The Tax Adviser	Accreting Swap) accretion Accretion of Discount Accretive Acquisition Accrual Accounting Accrual Accounting Convention Accrual Basis Accrual Bond accrual method Accrual Method of Accounting Accrual of Obligation Accrual Rate Accruals accrue Accrued Assets Accrued Benefit Cost Method Accrued Benefits accrued but unpaid accrued depreciation Accrued Discount Accrued Dividend Accrued Expense Accrued Income Accrued Income Scheme accrued interest Accrued Market Discount Accrued Taxes Acculturation Accumulate Accumulated Amount Accumulated Benefit Obligation Accumulated Depletion accumulated depreciation accumulated dividend Accumulated Earnings Tax Accumulated Other Comprehensive Income Accumulated Profits Tax Accumulation Accumulation Area Accumulation Benefits Accumulation Period Accumulation Plan Accumulation Trust Accumulation Unit Accumulation Unit Value Accumulation/Distribution Line Accuracy Acelerador financiero Aceptacion bancaria Aceptacion condicional ACES	Accrued Bond Accrued Bonds accrued but unpaid accrued depreciation accrued depreciation accrued depreciation Accrued discount Accrued Discounts Accrued Dividend Accrued Dividends Accrued Expenditure Unpaid Accrued Expenditures Paid Accrued Expense Accrued Expense Accrued Expense Accrued Expense Accrued Expenses Accrued Expenses Unpaid Accrued Income Accrued Income Scheme Accrued Income Scheme Accrued Income Schemes Accrued Incomes Accrued interest Accrued Interest Payable Accrued Interest Receivable Accrued Interests Accrued Leave Accrued liabilities Accrued Liability Accrued Market Discount Accrued Market Discounts accrued needs Accrued Operating Time Accrued Postretirement Benefit Cost Accrued Revenue Accrued Revenue Accrued Revenue Accrued Revenue Accrued Revenues Accrued Tax Accrued Taxes accruemen accruement accruement accruement Accruer accrues accrues accrues accruing accruing accruing Accruing Superannuation Liability Contributions Accrument ACCRY ACCS ACCS Capability Requirements ACCS Change Requirements ACCS Common Hardware ACCS Common Operating System

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Accrued Discount

Amortization of Secondary Market TIPS Discount If TIPS are purchased in a secondary market at a price below their adjusted principal, the holder reports accrued market discount as ordinary interest income, either annually or when the bond matures or is sold.

Tax planning for the use of TIPS at retirement by Toolson, Richard B. / The Tax Adviser

However, the gain on the sale or redemption of market discount bonds acquired after April 30, 1993 is taxed as ordinary income to the extent of the accrued market discount.

Tax aspects of municipal bonds by Fleming, Peter D. / Journal of Accountancy

For a debt instrument without OID, the accrued market discount for a period is the total remaining discount multiplied by a fraction: stated interest paid during the accrual period divided by the total stated interest remaining to be paid as of the beginning of the period.

Tax treatment of market discount bonds by Oberst, Timothy S. / The Tax Adviser

Accreting Swap)

accretion

Accretion of Discount

Accretive Acquisition

Accrual Accounting

Accrual Accounting Convention

Accrual Basis

Accrual Bond

accrual method

Accrual Method of Accounting

Accrual of Obligation