bond discount

bond discount
Sale of bonds on the market at a price less than the face amount of such. Claussen's, Inc. v. U. S., C.A.Ga., 469 F.2d 340, 345.
From the standpoint of the issuer of a bond at the issue date, is the excess of the par value of a bond over its initial sales price; at later dates the excess of par over the sum of (initial) issue price plus the portion of discount already amortized. From the standpoint of a bondholder, is the difference between par value and selling price when the bond sells below par
+ bond discount
The difference between the face amount or obligation of the bond and the current market price of such bond, if selling price is lower than market price. Claussen's Inc. v. U. S., C.A.Ga., 469 F.2d 340, 345

Black's law dictionary. . 1990.

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  • bond discount — Sale of bonds on the market at a price less than the face amount of such. Claussen s, Inc. v. U. S., C.A.Ga., 469 F.2d 340, 345. From the standpoint of the issuer of a bond at the issue date, is the excess of the par value of a bond over its… …   Black's law dictionary

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  • Discount — Referring to the selling price of a bond, a price below its par value. Related: premium. The New York Times Financial Glossary * * * ▪ I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable] 1. COMMERCE a reduction in the cost of goods or services… …   Financial and business terms

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