Discount Bond
/ˈdɪskaʊnt bɒnd/
Definitions
- (n.) A bond issued at a price lower than its face value, paying no periodic interest but redeemed at full face value at maturity.
The investor purchased a discount bond to profit from its appreciation at maturity.
Forms
- discount bond
- discount bonds
Related terms
See also
Commentary
Discount bonds are often used in legal drafting to denote debt instruments without periodic coupon payments, requiring precise distinction from interest-bearing bonds.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.