A discount, when speaking of bonds, is the difference between a bond's trading price and its par value when the trading price is below par.

Name: A discount, when speaking of bonds, is the difference between a bond's trading price and its par value when the trading price is below par.
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

A discount bond is a bond that is issued, traded or sold at a lower price than its par or face value. The difference between the lower trading price and the higher par value is known as the discount.

A Discount, When Speaking of Bonds, Is the Difference Between