What Is a Discount Bond? A discount bond is a debt security that is issued or traded for a price lower than its face or par value. This means that investors can purchase the bond at a discount to its ...

Discover coupon stripping, which involves separating a bond's interest payments from the principal, turning them into individual securities called strip bonds.

What Is the Accretion of Discount? The Accretion of discount refers to the increase in the value of a discounted instrument as time passes and the maturity date draws nearer. Discounted instruments ...