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
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