Any bond that is issued at a discount is known as
A)a pure discount bond.
B)a zero-coupon bond.
C)an original issue discount bond.
D)a premium bond.

Question

Quizplus · Accepted Answer

An original issue discount bond is a bond that is issued at a discount, meaning that it is sold for less than its face value. This type of bond is typically issued by corporations and governments to raise capital. The discount on the bond is amortized over the life of the bond, which means that the bondholder receives interest payments that are greater than the coupon rate on the bond.

Any Bond That Is Issued at a Discount Is Known