YourDictionary

Dictionary Home » Invest » discount bond

discount bond investment & finance definition

  1. A debt instrument, such as a Treasury bond, that has its coupon stripped away from the debt. Thus, no periodic interest is paid. It trades at a discount from its settlement value at maturity.
  2. A bond that sells below its value at maturity because market interest rates are higher than its coupon rate.

See discount bond in Wall Street Words

Learn more about discount bond

link/cite print suggestion box