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Explanation of deep discount bonds

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Explanation of deep discount bonds
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Mohit Sharma 6 years, 3 months ago

Deep discount bond. Deep discount bonds are originally issued with a par value, or face value, of $1,000. But they decline in value by at least 20% -- to a market value of $800 or less -- typically because interest rates have increased. ... Zero-coupon bonds are an example of original issue discount bonds.

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