discount bond

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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.
3o) For the treatment of market discount bonds, see Q 7730 to Q 7736.
However, the market discount bond rules supersede this general principle.
Announced in March 1989, the Brady plan contemplated the commercial banks' exchange of sovereign debt for bonds, either par or discount bonds, collateralized by a special issue of U.
However, there is a limit on the deductibility of interest expense on debt incurred to purchase or carry market discount bonds.
For a discount bond, the basis increases at the rate of the accrued market discount until it reaches the principal value at maturity.
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.
If one purchases the 90-day pure discount bond for $96, which one is able to do via a futures contract, then the rate of return on the 90-day pure discount bonds is 4.
Covering those aspects of accounting and auditing unique to investment companies, the guide provides new guidance on accounting for offering costs, amortization of premium or discount bonds, liabilities for excess expense plans, reporting complex capital structures, payments by affiliates, financial statement presentation and disclosures for investment companies and nonpublic investment partnerships.
There exists a continuum of unit discount bonds maturing at all times s [element of] [0, T].
The government computes its cost of funds by forming the sum of current coupons on long-term coupon bonds and the appreciation on short-term discount bonds.