Accrued market discount
Accrued market discount
Accrued market discount is the rise in the market value of a discounted bond that occurs as its maturity date approaches. For example, a bond with a face value of $100 might be purchased for the discounted price of $50. Over time, the market value of this bond will gradually rise from $50, reaching $100 at the maturity date, when it's redeemable for the full face value. This increase in market value is not related to a change in market interest rates.
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