discount bond Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “discount bond” in the English Dictionary

"discount bond" in Business English

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discount bondnoun [C]

uk   us   (also discounted bond) FINANCE
a ​bondsold before its ​paymentdate at a ​price that is ​lower than its ​value, so ​investors will get a ​profit when the ​bond is ​paid on its ​paymentdate: The ​par and ​discountbonds have a ​life of 30 ​years with all the ​capital being ​repaid on ​maturity.
(Definition of discount bond from the Cambridge Business English Dictionary © Cambridge University Press)
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