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discount bond

   Also found in: Wikipedia 0.01 sec.
Discount Bond
A bond that is valued at less than its face amount.

Notes:
This either means the bond is high risk or it offers a low coupon rate.

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 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.
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? Mentioned in ? References in periodicals archive
 
This is natural, in that hL is the risk neutral mean-loss rate of the defaultable discount bond due to default.
Defaultable puttable/callable bond valuation: a 3D finite difference ... by Chou, Heng-Chih / Journal of Academy of Business and Economics
Debt instruments that qualify as inflation-indexed debt will be subject to one of two methods to account for qualified stated interest and original issue discount (OID) on the instrument: the coupon bond method or the discount bond method.
Inflation-indexed debt instruments by Garay, Mark / The Tax Adviser
However, the gain on the sale or redemption of market discount bonds acquired after April 30, 1993 is taxed as ordinary income to the extent of the accrued market discount.
Tax aspects of municipal bonds by Fleming, Peter D. / Journal of Accountancy
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