Sentences with phrase «original issue discount»

These securities are known as Original Issue Discount (OID) bonds, since the difference between the discounted price at issuance and the face value at maturity represents the total interest paid in one lump sum.

In addition, Internal Revenue Service Publications 550, «Investment Income and Expenses,» and 1212, «List of Original Issue Discount Instruments,» may provide useful information for investors who buy, hold or sell market discount bonds.

The debt component of the offering consists of $ 6 million in non-interest bearing non-convertible original issue discount senior secured debt maturing on February 10, 2019 and warrants to purchase a total of 6,875,000 shares of Common Stock at a fixed exercise price of $ 0.96 per share.

Zeros are issued at a discount and mature at par value, and the amount of the spread is divided equally among the number of years to maturity and taxed as interest, just as any other original issue discount bond.

RiceBran Technologies (NASDAQ: RIBT and RIBTW)(the «Company» or «RIBT»), a global leader in the production and marketing of value - added products derived from rice bran, today announced that it has entered into definitive agreements with a group of accredited investors for the purchase of $ 6 million of non-convertible original issue discount debentures and $ 2 million of convertible preferred stock.

Secured Creditors» Right to Recover Principal + Interest + Default Interest + Original Issue Discount + Late Fees + Prepayment Premiums + Fees + Expenses ``, American Bankruptcy Institute Southeast Conference, Amelia Island, Florida, July, 2015

In the case of a bond sold with original issue discount (OID), such as a zero - coupon bond, market discount is the difference between the purchase price and the issue price of the bond plus accreted OID.

the bond is issued at a discount and is later purchased in the secondary market at a price that is less than the original issue price plus accrued original issue discount through the date of purchase.

No attempt was made to address Original Issue Discount (OID) bonds which also have tax advantages regarding price appreciation.

Zero Coupon Municipal Bond OID Accretion Calculator: Calculate the annual Original Issue Discount accretion for up to 25 zero coupon municipal bonds at once.

Adjustments to principal value, which fluctuates according to changes in the Consumer Price Index, are reported as original issue discounts (OIDs) on Form 1099 - OID.

If the bond has face value $ 1100 five years from now and is sold by the issuer for $ 1000 today, then it is not a coupon bond in the usual sense of the word (and it does not have a 10 % coupon) but rather it is a zero - coupon or original issue discount bond.

It depends on how long you hold and at what price you bought compared to the original issue discount.

The face value of this original issue discount senior secured debt is $ 6.6 million, reflecting an aggregate original issue discount of $ 600,000.

«Original issue discount» refers to CDs with terms greater than 12 months that receive interest at maturity.

You might need to include part of the original issue discount in your income each year as interest.

If a tax - exempt bond is purchased at a premium (i.e., at a price in excess of the face amount of the bond), whether at original issue or in the secondary market, the bond premium is amortized over the remaining term of the bond using the same constant yield to maturity method discussed above under «Original Issue Discount.»

This form reports interest income earned as a result of an Original Issue Discount (OID).

If a tax - exempt bond is originally issued at a price less than par (as distinguished from a subsequent sale of a previously - issued bond), the difference between the issue price of such bond and the amount payable at the maturity of the bond is considered «original issue discount» (OID).

On July 1, 2004, the original holder would have accrued $ 28.10 in original issue discount (calculated by multiplying the issue price by 3 %, reducing that amount for the actual interest paid, and repeating the calculation for two semi-annual periods).

These calculations are very complex and holders who purchase bonds in the secondary market should consult with their brokers and tax advisors to ensure that they have adequate information to properly calculate their tax basis, the amount of original issue discount and market discount that accrues during the period they hold the bond, and the appropriate amount of gain on sale or maturity.

For example, the bond that was discussed in section 2 (Original Issue Discount) was issued at $ 4,628 on July 1, 2003, had a coupon rate of 5.00 %, and a yield to maturity of 6.00 %.

Specifically, these 1099s report income from the acquisition or abandonment of secured property, cancelled debt, distributions from a medical savings account, long - term care and accelerated death benefits, original issue discount, taxable distributions from cooperatives, and certain government and qualified state tuition program payments.

For instance, if a $ 5,000 face amount bond (with a maturity of 10 years and a stated interest rate of 5 %, payable semi-annually) is issued for $ 4,628, the bond is treated for federal tax purposes as issued with $ 372 of original issue discount ($ 5,000 minus $ 4,628).

An original issue discount (OID) is the discount from par value at the time a bond or other debt instrument is issued; it is the difference between the stated redemption price at maturity and the actual issue price.

Usually, you must amortize points deducted over the life of the loan using the original issue discount (OID) rules.

This is also known as the original issue discount or OID.

For further information on bond taxation, download IRS Publication 1212: Guide to Original Issue Discount (OID) Instruments.

Keep in mind that the term «Original Issue Discount» is a standard IRS term and there is no «discount» in play here.

You're required to report a portion of that OID (original issue discount) each year you own the bond.

If the difference between you capital costs and the note are reported like an Original Issue Discount, which takes that difference and treats it like unrealized interest, then this is not going to be all that straightforward.