deep discount bonds

deep discount bonds
bonds issued at a discount to par value and redeemed at par or a premium to par. They may either pay a low coupon over their lives (low coupon bonds) or no coupon at all ( zero coupon bonds). The difference between the issue price and the redemption price is effectively interest on the amount borrowed. Dresdner Kleinwort Wasserstein financial glossary

Financial and business terms. 2012.

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  • Deep-discount bond — A bond issued with a very low coupon or no coupon and selling at a price far below par value. When the bond has no coupon, it s called a zero coupon bond. The New York Times Financial Glossary * * * deep discount bond UK US noun [C] ► FINANCE,… …   Financial and business terms

  • deep-discount bond — A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero coupon bond. Bloomberg Financial Dictionary * * * deep discount bond UK US noun [C] ► FINANCE, STOCK MARKET a… …   Financial and business terms

  • deep-discount — UK US noun [C] ► a large or greater than usual reduction in price: »Some companies are offering deep discounts to attract shoppers. »The book is now being sold for $17.99, a deep discount from the $34.99 suggested list price. at a deep discount… …   Financial and business terms

  • deep discount security — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… …   Law dictionary

  • deep discount bond — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… …   Law dictionary

  • Deep-Discount Bond — 1. A bond that sells at a significant discount from par value. 2. A bond that is selling at a discount from par value and has a coupon rate significantly less than the prevailing rates of fixed income securities with a similar risk profile. 1.… …   Investment dictionary

  • deep discount — A large discount for a financial instrument. The condition that exists when a financial instrument is trading at a market price that is well below its par value. May also be used to refer to those securities selling at prices well below par.… …   Financial and business terms

  • deep discounted bonds — /di:p ˌdɪskaυntɪd bɒndz/ plural noun Eurobonds which are issued at a very large discount but which do not produce any interest …   Dictionary of banking and finance

  • discount — a deduction made from the normal cost or purchase price. Glossary of Business Terms 1) Quality differences between those standards set for some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery …   Financial and business terms

  • Discount — Referring to the selling price of a bond, a price below its par value. Related: premium. The New York Times Financial Glossary * * * ▪ I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable] 1. COMMERCE a reduction in the cost of goods or services… …   Financial and business terms

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