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bond discount

noun

Definitions

  1. A reduction from the face amount of a bond that occurs where bonds are sold on the market…

    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.

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sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA