Securities that were issued at a discount from par because of their relatively small coupon payments are known as
A) corporate bonds
B) original issue discount securities
C) revenue bonds
D) on-the-run issues

Question

Quizplus · Accepted Answer

Original issue discount securities are issued at a discount from par value because of their relatively small coupon payments. This type of security is also known as a zero-coupon bond. Corporate bonds, revenue bonds, and on-the-run issues may or may not be issued at a discount from par, and the reason for the discount may vary.

Securities That Were Issued at a Discount from Par Because