Term of the Day: Discount Bond

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	INVESTOPEDIA Term Of The Day November 20, 2015 Discount Bond A bond that is issued for less than its par (or face) value, or a bond currently trading for less than its par value in the secondary market. A bond is considered a discount bond when it has a lower interest rate than the current market rate, and consequently is sold at a lower price. This interest rate, also called a coupon, is usually paid semiannually. As interest rates go up, bond prices go down. Discount bonds are similar to zero-coupon bonds, which are also sold at a discount, but the difference is that they don't pay interest. Common examples of discount bonds are U.S. Treasury bills and U.S. savings bonds. A deep-discount bond is sold at a significantly lower price than par value, usually 20% or more. Breaking It Down: Discount bonds can be bought and sold by both businesses and individuals. Businesses have strict regulations for the selling and... Read More Related to "Discount Bond" Bond Basics Tutorial The first thing that comes to most people's minds when they think of investing is the stock market. After all, stocks are... Read More What is Deadweight Loss? Deadweight loss is a concept used in economics that describes the loss to society as a result of... Read More 3 Signs It's Time to Sell Your Bonds Investing can be tricky, even when it comes to so-called "safe" investments such as bonds. Many investors choose bonds as long-term investments because... Read More Recently Added Definitions Corporate Social Responsibility Corporate social responsibility, often abbreviated "CSR," is a corporation's initiatives to assess and take... Read More Revenue The amount of money that a company actually receives during a specific period, including discounts and... Read More Related Definitions U.S. Savings Bonds Rule Of 72 Laissez Faire Coupon Swap Past Terms of the Day Conglomerate Brand Identity Yield To Maturity (YTM) Weighted Average Cost Of Capital - WACC Implied Volatility - IV You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: