It is the second time that ICBC has sold the OTC bonds of China EXIM Bank and the product selected is the well-received discount bond
5bn to the market via the 14-month discount bond
and the 10-year fixed-coupon bond auctions yesterday.
Gain on the disposition of a market discount bond
is deemed to be attributable to market discount to the extent that discount has accrued during the holder's ownership.
investors, by comparison, received a discount bond
reflecting a 66.
However, note restrictions on this treatment of market discount bond
income, including that such bonds may not have a maturity date of one year or less from their date of issue (Sec.
7m) discount bond
in Turkey, the lender said today.
It is worth noting that, under current rules, the holder of a market discount bond
does not have to annually include in gross income the accrued market discount.
5) Any partial payment of principal on a market discount bond
acquired after October 22, 1986, is treated as a payment of market discount and included in income to the extent that market discount has accrued up to that time.
However, the market discount bond
rules supersede this general principle.
Not surprisingly, discussions of the terms of the discount bond
(a bond issued at less than the principal amount of the debt exchanged) focused on the appropriate percentage of the principal discount and the interest spread; and discussions of the par bond (a bond issued at the same principal amount as the debt exchanged) focused on the applicable initial interest rate and the later step-up of the interest rate.
One-period nominal forward contracts, s periods ahead; these contracts represent a commitment in period t to purchase a one-period nominal discount bond
in period t + s at the pre-specified dollar price [Q.
For a discount bond
, the basis increases at the rate of the accrued market discount until it reaches the principal value at maturity.