discount bond

(redirected from Discount bonds)
Also found in: Dictionary, Thesaurus.
Related to Discount bonds: Deep Discount Bonds

Discount bond

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

Discount Bond

A bond or other debt instrument that is issued at a price below its face value. For example, a bond with par of $10,000 might be issued to an investor for $7000. All zero-coupon bonds are discount bonds.

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.
References in periodicals archive ?
partial payments on market discount bonds, and OID accruals (which are not technically payments).
Market discount bonds, similar to those acquired at par or premium, may, nonetheless, increase in value and call risk because of factors other than a change in interest rates, such as an increase in the bond's rating or an overall increased demand for a newly popular sector of corporate bonds.
Gain on the disposition of any market discount bond is treated as ordinary income to the extent it does not exceed the accrued market discount on the bond (Sec.
In one case, discount bonds worth over 100 million yen were concealed in zabuton cushions in the home of a relative of the tax evader.
A pure discount bond provides its holder with a single payment upon maturity.
A unit discount bond is a financial asset that entitles its owner to one unit of account at maturity without any intermediate coupon payments and without any default risk.
The modem theory of the term structure of interest rates prices a coupon bond in three steps: 1) viewing the coupon bond as a bundle of pure discount bonds; 2) unbundling it into the constituent pure discount bonds and valuing these components; and 3) adding up the values of the components to attain the value of the bundle.
The rules regarding dispositions of market discount bonds are outlined in Sec.
The typical household's wealth consists of currency, one-period inflation-indexed and one-period nominal discount bonds.
Because the definition of cash flow is quite general, it can be used for general insurance as well as combinations of whole life insurance, term life insurance, deferred life insurance, annuities, and pure discount bonds.
Discount bonds in foreign currency issued under foreign law 'CCC+';
The Ministry of Finance (MOF) said Thursday it will auction and issue three-year discount bonds in November, halting its issues of five-year discount bonds.