discount bond

(redirected from Discounted Bond)

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 ?
Citizens from the respective countries will buy the new bonds and all three parties can benefit from the discounted bond price: the stretched government, the EFSF and the local citizen.
Argentina has offered creditors an option to receive bonds equivalent to value of debt or discounted bonds.
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.
The company estimates that its yield to maturity on these discounted bonds will approximate 15%.
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.
These now-heavily discounted bonds are owned by a variety of banks, hedge funds, and other institutional investors.
Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes.
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.
According to a Schaedler Insurance representative, "The demand for discounted bonds for contractors with poor credit has been overwhelming.