deep discount security

deep discount security
deep discount security/deep discount bond
A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to the investor will be in the form of payment of the principal amount of the bond at redemption when the bond is redeemed at its full value.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • deep discount bond — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… …   Law dictionary

  • deep-gain security — A security issued at a deep discount or redeemed at a premium. The terms of the issue mean that the amount of discount or premium cannot be allocated evenly over the life of the bond. From 14 March 1989 the whole of the excess of the proceeds… …   Accounting dictionary

  • deep-gain security — A security issued at a deep discount or redeemed at a premium. The terms of the issue mean that the amount of discount or premium cannot be allocated evenly over the life of the bond …   Big dictionary of business and management

  • deep gain securities — The rules relating to deep gain securities were repealed and rewritten by the Income Tax (Trading and Other Income) Act 2005 with effect from 6 April 2005 and are now contained in the rules relating to deeply discounted securities. Prior to 6… …   Law dictionary

  • discount — a deduction made from the normal cost or purchase price. Glossary of Business Terms 1) Quality differences between those standards set for some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery …   Financial and business terms

  • 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

  • zero coupon security — noun a security that makes no interest payments but instead is sold at a deep discount from its face value • Syn: ↑zero coupon security • Hypernyms: ↑security, ↑certificate • Hyponyms: ↑zero coupon bond, ↑zero coupon bond …   Useful english dictionary

  • zero-coupon security — noun a security that makes no interest payments but instead is sold at a deep discount from its face value • Syn: ↑zero coupon security • Hypernyms: ↑security, ↑certificate • Hyponyms: ↑zero coupon bond, ↑zero coupon bond …   Useful english dictionary

  • zero coupon bonds — Bonds on which no interest is payable. The principal and the interest are paid at the maturity date. Such bonds will be issued and traded at a substantial discount to the face value. Related links coupon deep discount security/deep discount bond …   Law dictionary

  • Zero-coupon bond — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

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