Answer:
Accrued market discount is the prior to sold the bond when income interest is treated as amount of discount when it is purchased from the Secondary bond market.
Explanation:
Bonds that have already been issued (in the primary market) can be bought and sold in the secondary bond market. The depth and liquidity of a secondary market are essential for a capital market to operate smoothly.
Accrued market discount A bond is said to be sold at a discount if it is sold for less than its face value. The bond's cost will progressively rise to par over time. The accrued market discount is the term used to describe the progressive rise in price over time. Any accrued market discount recognised since acquisition will be taxable if sold before maturity.
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