Information
> Financial
Terms > This page
Amortized Values
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
J Woelfel
(We recommend this as work of authority and you can order
it here)
In
valuation of bonds, the original cost price, minus the AMORTIZATION of
premium (on straight-line basis) to maturity of earlier call feature producing
lowest amortized value.
This is the basis prescribed, for example, by New York State for
all insurance companies for 1967 (amortized values on amortizable securities
and values on the “convention” basis for other securities).
Banks
in valuing bonds are required to amortize premium and have the option
of accreting discount.
Back to Information
|
