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. The debt is valued to be around USD1.33bn.
distressed debt typically purchase highly discounted bonds, eschew
It rests on realizing capital gains on discounted bonds, often
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.
Dhaliwal, 1985, "The Agency Cost Rationale for Refunding Discounted Bonds", Journal of Financial Research, 8:43-50
(Often, the debt instruments are deeply discounted bonds.) Upon conversion, the issuer either is required or has the option to settle all or part of the obligation in cash.
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.
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.