ACCRETED VALUE Meaning and
Definition
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Accreted value refers to the increase in value of an asset over time, resulting from factors such as growth, interest, or the addition of new features or improvements. It is a term often used in finance and real estate.
In finance, accreted value typically refers to the appreciation of a bond or other debt instrument, which occurs as the security approaches its maturity date. The bond’s accreted value represents the gradual increase in its market price over time, as it comes closer to its face value (the amount the bondholder will receive upon maturity). This increase in value is due to the accumulation of interest payments or the reduction of the bond's yield to maturity.
In the context of real estate, accreted value is the incremental increase in a property's worth due to various factors. This can include physical improvements made to the property, such as renovations or additions that enhance its market appeal and functionality. Accreted value may also result from economic factors, such as population growth, infrastructure development, or improved market conditions that create higher demand for properties in a certain area.
Overall, accreted value represents the growth in value of an asset over time, which can occur through various mechanisms and factors. It is a measure that is commonly used to evaluate the performance and potential profitability of investments, both in the financial and real estate sectors.
Common Misspellings for ACCRETED VALUE
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Etymology of ACCRETED VALUE
The word "accreted" comes from the Latin term "accretus", which is the past participle of "accrescere", meaning "to grow" or "to increase". In the context of finance or investment, "accreted" refers to the gradual increase or growth of value.
The term "value" comes from the Old French word "valu", which originated from the Latin term "vallere", meaning "to be strong" or "to be of worth". "Value" refers to the worth, importance, or worthiness of something.
When combined, "accreted value" refers to the increased or growing worth or importance of something over time. This term is commonly used in finance to describe the appreciation or increase in the value of an investment or asset.
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