discount bond

English - Turkish

Definition of discount bond in English Turkish dictionary

(Finans) Sadece vade tarihinde yapılmak üzere tek bir ödeme vadeden bono

Related Terms

pure discount bond

(Ticaret) ıskontolu tahvil

English - English

Definition of discount bond in English English dictionary

(Finans) A zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. Examples of zero-coupon bonds include U.S. Treasury bills, U.S. savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has been stripped of its coupons

Related Terms

bond discount

A reduction from the face amount of a bond that occurs where bonds are sold on the market for cash at a price less than the face amount. Since bonds mature years after issue, they are discounted to reflect present value

deep discount bond

(Finans) A zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. Examples of zero-coupon bonds include U.S. Treasury bills, U.S. savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has been stripped of its coupons

Hyphenation

dis·count bond

Turkish pronunciation

dîskaunt bänd

Pronunciation

/dəsˈkount ˈbänd/ /dɪsˈkaʊnt ˈbɑːnd/