Accreted value is the value a bond would sell at if market interest rates were to remain at current levels. It is the value, at any given time, of a multi-year instrument that accrues interest but does not pay that interest until maturity.
Accreted value is a concept that derives from the initial offering price of the Bonds. The accreted value represents two components:
a. the investment made by the initial purchaser on the date of the initial offering, plus
b. the accrued interest to the date or repudiation, premised on purchase at the initial offering. [Employees' Retirement Sys. v. Resolution Trust Corp., 840 F. Supp. 972, 986 (S.D.N.Y. 1993)].