OID


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OID

Original Issue Discount

The difference between a bond's face value and the amount for which it is sold by the issuer. Many bonds, especially those with low interest rates, are issued at a price less than par in order to entice buyers. Generally, the lower the interest rate, the greater the original issue discount, with zero-coupon bonds having the largest. Short of default, the original issue discount is a guaranteed profit for a bondholder, as bonds must be redeemed at face value. It is considered a form of interest and may be taxed as such.

OID

References in periodicals archive ?
Corporate and Other reported core pre-tax income (excluding core OID amortization expense and repositioning items) of $37 million, compared to a loss of $5 million in the comparable prior year period.
Issued with OID and purchased with no bond premium or market discount;
Emp = New_Act('TypeEmp', 'Employee', T-Act); The variable Emp represents then the OID of the new T-Act managing the type "Employee".
The results indicate a significant and positive relationship between OID and LP for the Consumer Services Division, r (90) = .
To help ensure compliance with the reporting requirements for publicly offered OID instruments, the IRS will be working with representatives of the securities industry to better inform and remind OID bond issuers of their responsibility to file Forms 8281.
9497) and proposed regulations (REG-142800-09) in the Federal Register regarding the acceleration of deferred COD income and deferred OID deductions under Sec.
1273-2(g), such third-party payments reduce the issue price, therefore creating or increasing OID.
OID amortization expense totaled $18 million, including $7 million of accelerated OID, in the second quarter of 2015, compared to $53 million reported in the corresponding prior year period which also included $7 million of accelerated OID.
In 2000, it began reporting late-fee income as an increase in OID.
The allocation of payments of OID made under a debt instrument before maturity between the disqualified portion and the remainder is to be made pursuant to Treasury regulations.
The term portion of the bank financing is priced at LIBOR plus 725, OID of 98, with a 200 basis point LIBOR floor.
6049-9T(c), a broker must report the amount of any acquisition premium that reduces the amount of OID includible in income by the customer during the calendar year, using the constant-yield method, if notified in writing that a customer has made the constant-yield election.