Accreted Value

REMARKS

Zero Coupon Bonds are issued at a discount and mature at Par ($1,000).

The value of the bond increases mathematically by a slight amount every day during the life of the bond.

The mathematical value of the bond on a given day is its accreted value (or accumulated value to date).

Note that the accreted value may be higher or lower than the market value of the bond.

The price a bond would sell for if interest rates remained at their current level indefinitely.