Go Back   ManagementParadise.com | Management & Business Education Learning Platform Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

Accrual bond

Discuss Accrual bond within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; what is Accrual bond ? discuss Accrual bond in detail? Advertisements...

Reply

 

Thread Tools Display Modes
Accrual bond
Old
 (1 (permalink))
Sayed Arif
sayed123 is an unknown quantity at this point
 
sayed123
Student of BMS at RIZVI INSTITUTE OF MANAGEMENT AND STUDIES AND RESEARCH
Mumbai, Maharashtra
Management Paradise Newbie
 
Status: Offline
Posts: 109
Join Date: Nov 2013
Location: Mumbai, Maharashtra
Accrual bond - December 9th, 2013

what is Accrual bond ? discuss Accrual bond in detail?
Advertisements

Friends: (0)
Reply With Quote
Re: Accrual bond
Old
 (2 (permalink))
Asad Khan
taskinuddin is an unknown quantity at this point
 
taskinuddin
Student of BMS at RIZVI INSTITUTE OF MANAGEMENT AND STUDIES AND RESEARCH
Mumbai, Maharashtra
Management Paradise Newbie
 
Status: Offline
Posts: 111
Join Date: Dec 2013
Location: Mumbai, Maharashtra
Re: Accrual bond - December 9th, 2013

An Accrual bond is a fixed interest rate bond which is similar to a zero coupon bond with the only exception that the interest payments are accrued to the principal value and paid at maturity. This type of bond is generally sold at a deep discount and matures at its face value.
The major advantage of such bonds is that the investor doesn%u2019t face the reinvestment risk, on the contrary, he loses the opportunity to gain from favourable market conditions and interest rate changes have a significant impact on this bond. Also, the major disadvantage is phantom income i.e. the investor needs to pay tax even for the interest that he doesn%u2019t get and is accrued to the bond.
Friends: (0)
Reply With Quote
Re: Accrual bond
Old
 (3 (permalink))
Rose Marry
rosemarry2 is an unknown quantity at this point
 
rosemarry2
Management Paradise Guru
Status: Offline
Posts: 2,125
Join Date: Apr 2016
Re: Accrual bond - April 20th, 2016

Quote:
Originally Posted by sayed123 View Post
what is Accrual bond ? discuss Accrual bond in detail?
Hey friend,

Please check attachment for Notes on Bonds and Long-Term, so please download and check it.
Attached Files
File Type: pdf Notes on Bonds and Long-Term.pdf (73.9 KB, 0 views)
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
accrual, bond, definition, short essay, short note
Related to Accrual bond
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Bond yields edge higher ahead of proposed Rs 10,000 crore worth OMO Rahul Sankrit Stock Markets Tips & Gyan !! 0 October 8th, 2013 10:04 AM
Definition of accural bond. Tejas Gaikwad Accounts 0 August 7th, 2013 04:16 PM
Columbia Business School and Tepper School of Business Propose Municipal Bond Market Maya Raichura International MBA 0 July 21st, 2012 04:31 AM
Columbia Business School and Tepper School of Business Propose Municipal Bond Market Maya Raichura International MBA 0 July 20th, 2012 04:30 PM
James Bond vs. Hyderabad guy themaharana LaUghTeR AccEleRatED , Just CHILL !! 0 May 6th, 2006 09:50 PM
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.



Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.