bond discount

bond discount
A reduction from the face amount of a bond that occurs where bonds are sold on the market for cash at a price less than the face amount. Since bonds mature years after issue, they are discounted to reflect present value.

Wikipedia foundation.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • bond discount — The difference by which a bond s market price is lower than its face value. The antithesis of a bond premium, which prevails when the market price of a bond is higher than its face value. Bloomberg Financial Dictionary See: original issue… …   Financial and business terms

  • Bond Discount — The amount by which the market price of a bond is lower than its principal amount due at maturity. This amount, called its par value, is often $1,000. As bond prices are quoted as a percent of face value, a price of 98.00 means that the bond is… …   Investment dictionary

  • bond discount — Sale of bonds on the market at a price less than the face amount of such. Claussen s, Inc. v. U. S., C.A.Ga., 469 F.2d 340, 345. From the standpoint of the issuer of a bond at the issue date, is the excess of the par value of a bond over its… …   Black's law dictionary

  • bond discount — Sale of bonds on the market at a price less than the face amount of such. Claussen s, Inc. v. U. S., C.A.Ga., 469 F.2d 340, 345. From the standpoint of the issuer of a bond at the issue date, is the excess of the par value of a bond over its… …   Black's law dictionary

  • Unamortized Bond Discount — An accounting methodology for certain bonds. The unamortized bond discount is the difference between the par of a bond the value of the bond at maturity and the proceeds from the sale of the bond by the issuing company, less the portion that has… …   Investment dictionary

  • bond — 1 n 1 a: a usu. formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure …   Law dictionary

  • discount bond — see bond 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • unamortized bond discount — par value of a bond less the proceeds received from the sale of the bond, less whatever portion has been amortized. Bloomberg Financial Dictionary …   Financial and business terms

  • 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

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”