Ads
related to: accretion and amortization on bond fundsparknationalbank.com has been visited by 10K+ users in the past month
Search results
Results From The WOW.Com Content Network
When trading in bonds, accretion is the capital gain expected when a bond is bought at a discount to its par value, [1] given that, it is expected to mature at par. Accretion can be thought of as the antonym of amortization: Accreting swap vs Amortising swap.
Original Issue Discount (OID) is a type of interest that is not payable as it accrues. OID is normally created when a debt, usually a bond, is issued at a discount.In effect, selling a bond at a discount converts stated principal into a return on investment, or interest.
Amortization is recorded in the financial statements of an entity as a reduction in the carrying value of the intangible asset in the balance sheet and as an expense in the income statement. Under International Financial Reporting Standards, guidance on accounting for the amortization of intangible assets is contained in IAS 38. [1]
These municipal bond funds are some of the best ways to include munis in your portfolio. Advantages: Tax-free yields and relative safety. Disadvantages: Benefit high-income investors the most.
Rise in bond prices: When rates fall, the prices of bonds held by the bond fund go up. This is because the older bonds in the fund pay higher interest rates compared to newer bonds, so the value ...
A bond exchange-traded fund (ETF) can use different portfolio strategies that can be tailored to each investor’s needs. Some funds may purchase only short-term bonds , reducing interest-rate ...