The gradual increase in value of a financial instrument over time, particularly bonds purchased at a discount that appreciate toward face value as they approach maturity. Also refers to the gradual accumulation of assets or value through natural growth.
From Latin 'accretio' (increase, growth) from 'accrescere' (to grow toward). In finance, this term was adopted from geology and biology in the mid-20th century to describe the natural appreciation of discounted securities toward their maturity values.
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