deep discount bond
deep discount security/deep discount bond
A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to the investor will be in the form of payment of the principal amount of the bond at redemption when the bond is redeemed at its full value.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Deep-discount bond — A bond issued with a very low coupon or no coupon and selling at a price far below par value. When the bond has no coupon, it s called a zero coupon bond. The New York Times Financial Glossary * * * deep discount bond UK US noun [C] ► FINANCE,… …   Financial and business terms

  • deep-discount bond — A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero coupon bond. Bloomberg Financial Dictionary * * * deep discount bond UK US noun [C] ► FINANCE, STOCK MARKET a… …   Financial and business terms

  • Deep-Discount Bond — 1. A bond that sells at a significant discount from par value. 2. A bond that is selling at a discount from par value and has a coupon rate significantly less than the prevailing rates of fixed income securities with a similar risk profile. 1.… …   Investment dictionary

  • Deep-Discount-Bond — Unter einem Deep Discount Bond versteht man eine Anleihe, deren Kupon bewusst so niedrig gehalten ist, dass sie mit einem großen Kursabschlag emittiert wird, d.h. zu Beginn ihrer Laufzeit stark unter pari notiert. Kategorie: Verzinsliches… …   Deutsch Wikipedia

  • deep-discount bond —  A bond sold at a price well below face value …   American business jargon

  • Deep Discount Bond — ⇡ Anleihe mit einer unter dem Kapitalmarktzins zum Emissionszeitpunkt liegenden für die gesamte Laufzeit (i.d.R. 25 bis 30 Jahre) festen Nominalverzinsung (Unterverzinsung). Die Unterverzinsung wird durch ein ⇡ Disagio ausgeglichen; bestimmt… …   Lexikon der Economics

  • deep discount security — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… …   Law dictionary

  • deep discount — A loan stock issued at a discount of more than 15% of the amount on redemption or, if less, at a discount of more than 1/2% for each completed year between issue and redemption. The discount will be treated as income accruing over the life of the …   Accounting dictionary

  • deep discount — A loan stock issued at a discount of more than 15% of the amount on redemption or, if less, at a discount of more than 1 2% for each completed year between issue and redemption. The discount will be treated as income accruing over the life of the …   Big dictionary of business and management

  • bond — Synonyms and related words: Fannie Mae, Federal Agency bond, Ginnie Mae, Oregon boat, Series E bond, Series H bond, accident insurance, accord, accouple, accumulate, actuary, addition, adherence, adhesion, adhesive, adjunct, adjustment bond,… …   Moby Thesaurus

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