zero coupon bond

(redirected from Discount bonds)
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Related to Discount bonds: Deep Discount Bonds
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  • noun

Synonyms for zero coupon bond

a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond

References in periodicals archive ?
But investors may use the ratable method with respect to any other market discount bonds, unless they choose separately for each bond to apply the constant yield method.
Compared with other bonds, investors buying the discount bonds in the same par value will pay less.
We understand anecdotally that it is common market practice for taxpayers to report market discount upon payments on or the proceeds of the disposition of market discount bonds which have been purchased for more than 50 cents on the dollar, and for taxpayers to allocate payments on or the proceeds of a disposition of market discount bonds which have been purchased for less than 50 cents on the dollar to a return of basis before recognition of market discount or other gain on the bonds, regardless of whether the bonds in question are in default.
investors, by comparison, received a discount bond reflecting a 66.
Unlike certificates of deposit, where deferred income is currently taxed, market discount bonds allow income recognition to be deferred until maturity or disposition.
A taxpayer determines the amount of original issue discount allocable to an accrual period using steps similar to those for original issue discount bonds that are not inflation-indexed (see Q 7737).
As a result, there is substantial uncertainty on the treatment of market discount bonds upon the occurrence of a default.
5) In developing the procedures for the Argentine bond exchanges, the parties were able to build upon the structure of the par bonds and discount bonds created under the Mexican Brady-bond transaction.
67bn after buying back at a discount bonds with a face value of EUR3.
The law also provides for certain limits on the deductibility of interest expense incurred to purchase or carry market discount bonds.
Exhibit 1 summarizes the differences in the taxation of returns on premium bonds, market discount bonds, and OID bonds for both taxable and tax-exempt municipal bonds.
31, 2003, for those who opt for par and discount bonds.
Rather than wait for future tobacco-related revenues to materialize, a number of governments have sought immediate access to at least some of these resources by persuading investors to purchase at a discount bonds secured by anticipated future collections.
Treasury Bonds, Treasury Inflation Protected Securities (TIPS), and market discount bonds.
As in previous years, various means of tax evasion were reported in the survey, which includes illegal accounting, misuse of overseas transactions and changing assets into discount bonds or gold bullion and concealing them in homes or car trunks.