Question

Accretion of the discount on a municipal bond is an accounting process that increases the security's:

Answer 1

hope this helps Accretion is a term used in accounting for bonds and accretion is required when a bond is purchased at a discount. Bonds are issued with a face amount (par value) of $1,000, or a multiple of $1,000. The investor receives $1,000 at maturity, and the interest rate on the bond is based on the $1,000 face amount.