The amount by which a bonds par exceeds its market price. also called discount.
See discount on bonds payable. To Top
The excess of the face value of a bond over the price for which it is acquired or sold resulting from a disparity between the market rate of interest and the stated rate of interest on the bonds, also referred to as original issue discount (OID). In governmental funds, bond discount associated with a bond sale is reported as an other financing use.
The difference by which a bond's market price is lower than its face value. The antithesis of a bond premium, which prevails when the market price of a bond is higher than its face value. See: Original issue discount.
The amount by which the face value of a bond exceeds the actual price for which it is bought or sold.
The difference between the face value of a bond (what it will pay at a specified future date) and its current lower market value.
The excess of the value of a bond at maturity (the par value) over the issue price of a bond or the purchase price. The difference between the value at maturity and the issue price is often called original issue discount. For example, the par value of a bond is $1,000; the bond is issued at $990. The bond has $10 of original issue discount. Another bond has a par value of $1,000; you purchase it in the open market at $900. The bond has $100 of discount.
The difference between a bond's par value and its market price.
The difference between the face value and the sales price when bonds are sold below their face value.
