Deep discount bond

deep discount bond
bond selling for a discount of more than about 20% from its face value.

DEEP DISCOUNT BOND - Deep discount bonds are originally issued with a par value, or face value, of $1,0...
DEEP DISCOUNT BONDS - Bonds which bear interest at a rate well below market and accordingly are priced ...

Deep Discount Bond
A bond that trades substantially below its face value--usually more than 20% from its face value. The term is usually used in reference to zero coupon bonds.

Deep discount bond:
A bond that has a coupon rate far below rates currently available on investments and whose value is at a significant discount from par value.
Default risk: ...

Deep discount bonds:
Created in the 1970s and used by companies seeking to maximize their immediate Cash flow and investors keen to avoid taxation.

Deep Discount Bonds
Bonds which bear interest at a rate well below market and accordingly are priced for sale at a substantial discount from their face value so that the yield to maturity approximates market rates.

Deep Discount Bond. A bond where the market price is less than 20% or so of its face value.

Deep discount bonds are originally issued with a par value, or face value, of $1,000.

Deep Discount Bond
A bond with a low coupon rate relative to the current yield.
Defined Contribution Pension Plan ...

Deep discount bond Bond selling at more than 20% off its face value. Default risk Risk that a particular debtor will fail to make timely payments of interest and principal.

deep discount bond A bond that sells for significantly less than the face amount, ensuring built-in gain if the bond is held until maturity.

DEEP DISCOUNT BOND See: Zero coupon bond
DEFAULT The failure of a debtor to make timely payments of interest and principal amounts as they come due or to meet some other provision of a bond, mortgage, lease, or other contract.

Thus, zero-coupon bonds are a sub-set of the group of DEEP DISCOUNT BONDS. The advantage with this security to an investor is that, he does not have to worry about reinvestment, since there are no periodic inflows.

some of the new financial instruments are Zero coupon bonds, warrants, (detachable warrants secured premium Notes, Stock invest, Bond with floating interest rate, Deep discount bonds, option bonds, option, ...

of such a bond receives the rate of return by the gradual Appreciation of the security, which is redeemable at face value on a specified maturity date. See also Certificate of Accrual on Treasury Securities (CATS); Coupon Bond; Deep Discount Bond; ...

See also: Discount Bond, Expense, Bills, Banks, Saving