Compound Accreted Value

The value of a zero-coupon bond at any given time, based on the principal, with interest compounded at a stated rate of return over time.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.