amortization of premiums on bonds

  • Adjustment of the purchase price of bonds (bought at more than par value) to decrease the value to par at maturity or call date.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).