| 释义 |
deep-discount bond
deep-discount bond n (Banking & Finance) a fixed-interest security that pays little or no interest but is issued at a substantial discount to its redemption value, thus largely substituting capital gain for income deep-discount bond
Deep-discount bondA 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.Deep Discount BondA bond or other debt instrument that is issued at a price far below its face value. For example, a bond with par of $10,000 might be issued to an investor for $5,000. Junk bonds are often deep-discount bonds.deep-discount bond1. A long-term debt security that, because of a low coupon rate of interest compared with current rates of interest, sells at a substantial discount from face value. Bonds of this type, if not originalissue discounts, are preferred by some investors because they are unlikely to be called before maturity. See also municipal convertible, zero-coupon bond.2. See original-issue discount bond.AcronymsSeeDDB |