Fixed Income
Discount Bond
Definition
What is Discount Bond?
A bond trading below its face value.
Example in practice
How This Looks in Practice
A ₦1,000 bond priced at ₦940 is a discount bond.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.