issue of bonds at discount


issue of bonds at discount
allocating a set number of bonds to be sold at a lower price than their nominal worth

English contemporary dictionary. 2014.

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  • discount securities — (1) Securities that do not pay periodic interest. Investors earn the difference between the discount issue price and the full face value paid at maturity. Treasury bills, banker s acceptances, and zero coupon bonds are discount securities. Most… …   Financial and business terms

  • Issue — A particular financial asset. The New York Times Financial Glossary * * * ▪ I. issue is‧sue 1 [ˈɪʆuː, ˈɪsjuː ǁ ˈɪʆuː] verb [transitive] 1. to officially give something such as a document to someone who needs or wants it: issue somebody with… …   Financial and business terms

  • issue — A particular financial asset. Bloomberg Financial Dictionary * * * ▪ I. issue is‧sue 1 [ˈɪʆuː, ˈɪsjuː ǁ ˈɪʆuː] verb [transitive] 1. to officially give something such as a document to someone who needs or wants it: issue somebody with something •… …   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

  • issue price — Initial issue price of a financial instrument. Euroclear Clearing and Settlement glossary The gross price placed on a new bond issue, expressed as a percentage of the principal amount. Exchange Handbook Glossary * * * issue price issue price ➔… …   Financial and business terms

  • 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… …   Financial and business terms

  • Original issue discount — (OID) is a type of interest that is not payable as it accrues. OID is normally created when a debt, usually a bond, is issued at a discount. In effect, selling a bond at a discount converts stated principal into a return on investment, or… …   Wikipedia

  • Original Issue Discount — (OID) USA The discount from the face value of a bond or other debt instrument at the time that it is issued. It is the difference between the stated redemption price at maturity and the offering price. This discount is amortized over the life of… …   Law dictionary

  • original issue discount — (OID) USA The discount from the face value of a bond or other debt instrument at the time that it is issued. It is the difference between the stated redemption price at maturity and the offering price. This discount is amortized over the life of… …   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