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 ?
The range r is proportional to the elapsed time T after the emission of the laser pulse from the OID.
If bondholders sell, exchange, or otherwise dispose of an OID bond before maturity, they determine their gain or loss in reference to their adjusted basis.
Under the currenr-yicld-to-maturity method, the holder relics on OID principles to compute the accrued market discount, substituting "adjusted basis" tor "adjusted issue price" and the holder's yield to maturity for the original yield on the debt.
However, without a causal statistical relationship between OID and leadership practices, we would need to further study the Consumer Services Division through qualitative methods to try to determine the basis of the discontent.
5) The desire to remain in the organization is a consequence of OID because, for an individual who identifies with the organization, leaving the organization necessarily involves some psychic loss (Ashforth & Mael, 1989).
With regard to E&P, the regulations provided that COD income generally increases E&P in the tax year it is realized, and deferred OID deductions generally decrease E&P in the tax year in which they would be allowed without regard to the deferral rules of Sec.
The Tax Court agreed with the IRS that FSB could not change its accounting method and begin to prorate OID from over-limit fees and interchange fees for tax years 1998 and 1999.
In Sample 1, WID was significantly related to job satisfaction whereas OID was not (WID and OID were equally unrelated to turnover intentions, which, in itself, does not support our predictions).
A long-term debt instrument generally has OID when it is issued for a price less than face value.
3) Our proposal assumes that all of a taxpayer's indebtedness (excluding lease obligations) that bears explicit or OID interest will be included as either "traced" or "other" indebtedness in the capitalization calculation.
The rules on deferred OID deductions apply to all taxpayers, not just C corporations.
Meanwhile, the OID issued a bulletin to all licensed P&C insurers and producers to keep their customer's on their current policies for 60 days after the completion of repairs.