meaning of accretion discount

accretion discount meaning in Law Dictionary

n entry on an accounting guide for a bond purchased at a discount. This is accomplished by straight-line or constant interest strategy.

accretion discount meaning in Business Dictionary

Accounting entry made to adjust the guide value of a bond purchased at a discount (below its par value). Accretion is set either through 'straight line technique' (accretion enhance at a fixed rate) or because of the 'constant interest method' (accretion accelerates once the readiness date methods).