{"id":3330,"date":"2010-04-30T15:36:38","date_gmt":"2010-04-30T10:06:38","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=3330"},"modified":"2010-04-30T15:36:38","modified_gmt":"2010-04-30T10:06:38","slug":"compound-accreted-value-cav","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/compound-accreted-value-cav\/","title":{"rendered":"Compound Accreted Value &#8211; CAV"},"content":{"rendered":"<p>It is a measure of the theoretical value of a zero-coupon bond at any given point in time. Because there are no interest payments unlike with traditional bonds, the interest of a zero-coupon bond accrues until maturity. Therefore, the CAV can be calculated by adding all of the interest earned up to a given point in time to the original price.<\/p>\n<p>Calculating a zero-coupon bond&#8217;s CAV becomes important if the bond carries a call provision. This is because call provisions for zero-coupon bonds are typically linked to the bond&#8217;s CAV. The provision will usually stipulate that the issuer can call the bond on a specific date at a price that is a premium to the bond&#8217;s CAV.<\/p>\n<p>A zero-coupon bond is trading at a premium if it costs more than its CAV at that specific point in time. Conversely, the zero-coupon bond is trading at a discount if it costs less than its CAV.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is a measure of the theoretical value of a zero-coupon bond at any given point in time. Because there are no interest payments unlike with traditional bonds, the interest of a zero-coupon bond accrues until maturity. Therefore, the CAV can be calculated by adding all of the interest earned up to a given point [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[8025,8024],"class_list":["post-3330","post","type-post","status-publish","format-standard","category-general","tag-cav","tag-compound-accreted-value-cav","entry"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/3330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=3330"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/3330\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=3330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=3330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=3330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}