bond that has a coupon rate far below rates currently available on investments and that consequently can be traded only at a significant discount from par value-usually more than about 20%. It may offer an opportunity for capital appreciation.
bond selling for a discount of more than about 25% from its face value. Unlike Original Issue Discount (OID) bonds, deep-discounts were issued at a par value of $1,000, but market forces caused a decline.
bond selling for a discount of more than about 20% from its face value. Unlike a current coupon bond, which has a higher interest rate, a deep discount bond will appreciate faster as interest rates fall and drop faster as rates rise. Unlike Original Issue Discount bonds, deep discounts were issued at a par value of $1,000.
