accreted value

Accreted Value

The value of an original issue discount bond or other bond where the interest (or the equivalent) is not paid until maturity. The accreted value of such a bond often has only a rough relationship with its market value. See also: imputed interest.

accreted value

The current value of an original-issue discount bond, taking into account imputed interest that has accumulated.
References in periodicals archive ?
--$169.2 million (current accreted value) Milwaukee Redevelopment Authority pension funding (taxable) bonds, series 2003C and 2003D.
The securities will be redeemed by CNO at a redemption price, payable in cash, equal to the accreted value of the securities (calculated in accordance with the indenture governing the securities), plus accrued and unpaid interest to, but not including, the redemption date.
If the SRI project successfully achieves the targeted indicators, investors will not recover their original investment amount; the nominal value or accreted value (where applicable) of the SukukIhsan will be mandatorily reduced in accordance with a pre-defined formula.
The company's obligations include convertible senior notes with a principal amount outstanding of CAD64m, 3.2m convertible preferred shares with a fully accreted value of CAD80m at 30 April 2009 and accounts payable and accrued liabilities of CAD16m.
Starting in Year 4, the bond will pay contingent interest for the six-month period ending June 30 or December 31, if its average market price during a "measurement period" before the six-month period was greater than 120% of its accreted value. (The accreted value is the issue price plus the economic accrual of the discount.)The contingent interest is the greater of (1) the regular cash dividend for the six-month period multiplied by the number of shares into which the debt instrument may be converted or (2) a stated percent of the bond's average market price for the measurement period.
Bryant cautions the investor to be aware that although the buyer of the zero coupon bond does not receive interest payments yearly--as they would with a regular bond (coupon)--the buyer is responsible for paying taxes on the accumulation of interest on the bond, an amount known as the accreted value of the bond.
This treatment of the accreted TIP principal is the same as the tax treatment of the accreted value of zero-coupon securities.
Upon conversion, the issuer must pay cash for the obligation's accreted value (the debt's carrying amount at conversion) and may satisfy the conversion spread (the excess conversion value over the accreted value) in either cash or stock.
Securities and Exchange Commission, upgraded to 'AA' from 'AA-' the following Milwaukee Redevelopment Authority, Wisconsin (the authority) ratings: --$146.6 million (current accreted value) Milwaukee Redevelopment Authority pension funding (taxable) bonds, series 2003C and 2003D.
If the SRI project successfully achieves the pre-agreed outcome, investors will not recover their original investment amount; the nominal value or accreted value (where applicable) of the Sukuk Ihsan will be mandatorily reduced in accordance with a pre-defined formula.
The outstanding convertible note had an accreted value of USD80.7m, which will be modified to be redeemed at USD61.1m.
The revolver expires in July 2011, the unsecured term loan (USD84m accreted value) matures in April 2012, while other debts (USD11m) mature through mid-2011.