Deep Discount Bond

Business / Taxes / Deep Discount Bond: Deep discount bonds are originally issued with a par value, or face value, of $1,000. But they decline in value by at least 20% — to a market value of $800 or less — typically because interest rates have increased. They may also decline if people believe the company may have difficulty making the interest payment or repaying the principal. Either way, investors will no longer pay full price for the bond. Deep discount bonds are different from original issue discount bonds, which are sold at less than par value and accumulate interest until maturity, when they can be redeemed for par value. Zero-coupon bonds are an example of original issue discount bonds.

Other Words for Bond

Bond Verb Synonyms: cement, bind, hold together, stick, cohere
Bond Noun Synonyms: tie(s), shackles, chains, fetters, manacles, handcuffs, trammels, thongs, cord(s), rope(s), restraint(s), constraint(s), check(s), control(s), rein(s)
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Other Words for Deep

Deep Adjective Synonyms: profound, arcane, recondite, difficult, abstruse, obscure, esoteric, incomprehensible, beyond or past comprehension, impenetrable, unfathomable, inscrutable, mysterious, mystic(al), occult, weighty, serious, heavy
Deep Noun Synonyms: extensive, bottomless, abyssal, unfathomable, profound, wide, broad, yawning, chasmal or chasmic
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Other Words for Discount

Discount Adjective Synonyms: reduce, mark down, deduct, lower, take or knock off
Discount Verb Synonyms: diminish, lessen, minimize, detract from
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Discount

Business / Accounting / Discount: The amount charged by a financial institution when a note receivable is discounted: calculated as maturity value times discount rate times discount period. MORE

Municipal Bond Insurance

Business / Finance / Municipal Bond Insurance: An insurance policy that guarantees payment on municipal bonds in the event the issuer defaults. MORE

Municipal Bond Fund

Business / Taxes / Municipal Bond Fund: Municipal bond mutual funds invest in municipal bonds. Earnings from these funds are always free of federal income tax for all shareholders in the fund. In addition, some mutual fund companies offer f MORE

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