discount bond (redirected from Bond (finance))

Discount Bond

A bond that is valued at less than its face amount.

Notes:

This either means the bond is high risk or it offers a low coupon rate.

See also: Discount, Discount Note, Face Value, Original Issue Discount, Zero Coupon Bond

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Discount bond

Debt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond.

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discount bond

A bond selling at a price that is less than its par value. In addition to semiannual interest payments, a discount bond offers investors additional appreciation if the security is held until maturity.