A discount bond may be a bond that's issued at a cheaper price than its face value or a bond that's commerce within the secondary market at a price that's below the face value.
It's just like a zero-coupon bond, solely that the latter doesn't pay interest till maturity. A bond's face price is the quantity the institution provides to the investor once maturity is reached.
A bond might either have a further charge per unit, or the profit could be primarily based on the rise from a below-par original issue value and, therefore, the face price at maturity.
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