Definition

Accrued discount

Accrued discount means the interest that accumulates on savings bonds from the date of purchase until the date of redemption or final maturity, whichever comes first. Series A, B, C, D, E, EE, F, I, and J are discount or accrual bonds, meaning principal and interest are paid when the bonds are redeemed. Series G, H, HH, and K are current-income bonds, and the semiannual interest paid to their holders is not included in accrued discount.

Share it:  Cite

More from this Section

  • Derivatives
    Derivatives are financial contracts whose values are derived from the values of underlying ...
  • Unit banks
    Unit banks is the banks that offer the full range of their services from one office, though ...
  • Life income option
    Life income option is a life insurance settlement option in which the policy proceeds ...
  • Replacement cost insurance
    Replacement cost insurance is a property insurance by which the insured is indemnified ...
  • Board room
    Board room is a room at a brokerage firm where its clients can watch an electronic board ...