Phrases with «discount bond»

A discount bond refers to a type of bond that is sold at a price lower than its face value or par value. In simpler terms, it is a bond that you can buy at a discounted price. For example, if a bond has a face value of $1,000 but is being sold for $900, it is considered a discount bond. Full definition

Sentences with «discount bond»

  • Investors should consult with their tax or accounting advisors when purchasing, selling or redeeming market discount bonds to ensure they fully understand the tax implications. (investinginbonds.com)
  • The presence of discount bonds can indicate many things, such as predictions of falling dividends or a reluctance to buy on the part of the investors. (investopedia.com)
  • Additionally, if you purchase original - issue discount bonds and hold them until their maturity date, those investments may receive special tax treatment under federal tax law. (fidelity.com)
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