original-issue discount bond

original-issue discount bond definition - business

original-issue discount bond

A bond issued at a discount from par value. The discount occurs when the coupon on the bond is less than the market rate of interest for a bond of similar risk and maturity. Also called deep-discount bond. Compare minicoupon bond. See also zero-coupon bond.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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