Bonds at Discount | Discount Bonds | Definition | What are discount bonds?

Bonds at Discount

Bonds at Discount | Definition

Bonds which may be purchased below par, thereby producing a higher yield to maturity and in most cases, reducing the risk of call. As a general rule, the greater the discount, the lower the chances of a call and the greater the bond's attraction. Interest is paid upon presentation of coupon attached to the bond.

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