discount bond

(redirected from Discounted 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 ?
Argentina has offered creditors an option to receive bonds equivalent to value of debt or discounted bonds.
According to a Schaedler Insurance representative, "The demand for discounted bonds for contractors with poor credit has been overwhelming.
On Monday, the Treasury will hold an auction to sell 12-month discounted bonds denominated in Turkish lira.
The Treasury will sell 21-month discounted bonds denominated in Turkish lira, 5-year bonds with variable coupon payments and 5-year bonds with fixed coupon payments in three seperate auctions on Tuesday.
Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes.
These now-heavily discounted bonds are owned by a variety of banks, hedge funds, and other institutional investors.
ANKARA, Jul 14, 2009 (TUR) -- Turkish Treasury held two auctions on Tuesday to sell 22-month discounted bonds denominated in Turkish lira and 5-year state bonds.
The company estimates that its yield to maturity on these discounted bonds will approximate 15%.
ANKARA, Jun 23, 2009 (TUR) -- Turkish Treasury held two auctions on Tuesday to sell 20-month discounted bonds denominated in Turkish lira and 4-year state bonds with fixed coupon payments.