Original Issue Discount

Original Issue Discount
USA
The discount from the face value of a bond or other debt instrument at the time that it is issued. It is the difference between the stated redemption price at maturity and the offering price. This discount is amortized over the life of the bond and is treated as a form of taxable interest, which gets reported as it accrues, whether or not the issuer makes any taxable interest payments.
An original issue discount bond is a bond issued at a price below par. The most extreme example of an OID bond is a zero coupon bond (zero coupon bonds).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Original issue discount — (OID) is a type of interest that is not payable as it accrues. OID is normally created when a debt, usually a bond, is issued at a discount. In effect, selling a bond at a discount converts stated principal into a return on investment, or… …   Wikipedia

  • original issue discount — (OID) USA The discount from the face value of a bond or other debt instrument at the time that it is issued. It is the difference between the stated redemption price at maturity and the offering price. This discount is amortized over the life of… …   Law dictionary

  • original issue discount — ( OID) The amount of the difference between the par or redemption price and the price of the security at the time of its original issue. Issuers can issue securities with OID as an alternative to making periodic interest payments as a means of… …   Financial and business terms

  • original-issue discount — ( OID) The amount of the difference between the par or redemption price and the price of the security at the time of its original issue. Issuers can issue securities with OID as an alternative to making periodic interest payments as a means of… …   Financial and business terms

  • Original Issue Discount - OID — The discount from par value at the time that a bond or other debt instrument is issued. It is the difference between the stated redemption price at maturity and the issue price. An original issue discount bond is a bond issued at a price below… …   Investment dictionary

  • original issue discount securities — ( OIDS) bonds on which the coupon rate is set considerably below the yield to maturity at the time of issuance so that the bonds are issued at a discount from a par value. Bloomberg Financial Dictionary …   Financial and business terms

  • Original issue discount debt (OID debt) — Debt that is initially offered at a price below par. The New York Times Financial Glossary …   Financial and business terms

  • original issue discount debt — ( OID debt) debt that is initially offered at a price below par. Bloomberg Financial Dictionary …   Financial and business terms

  • discount securities — (1) Securities that do not pay periodic interest. Investors earn the difference between the discount issue price and the full face value paid at maturity. Treasury bills, banker s acceptances, and zero coupon bonds are discount securities. Most… …   Financial and business terms

  • Discount Home Shoppers' Club — Discount Home Shoppers Club, Inc. Founded 1997 Founder(s) Richard Burke Headquarters Englewood, Florida Key people Will Burke Website www.dhs club.com …   Wikipedia

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