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Discount Bonds
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Definition of Discount Bonds: A discount bond is a bond bought at a discount, or a price less than, its face value. The face value is the amount of money the holder of the bond receives at the expiry date of the bond. Unlike coupon bonds, discount bonds only pay the bearer once, when the bond expires.

About.Com Resources on Discount Bonds

Writing a Term Paper or High School / College Essay? Here are a few starting points for research on Discount Bonds:

Books on Discount Bonds

  • An examination and comparison of the discount on closed-end bond and stock funds - Lisa Anne Harkleroad, Thesis, 1991.
Journal Articles on Discount Bonds
  • Increasing Spot Rates of Interest: Structure of the Price of Default Free Discount Bond - Salvador Cruz Rambaud, International Journal of Theoretical and Applied Finance v5, n3 (May 2002): 321-32.
  • Pricing and Hedging Discount Bond Options in the Presence of Model Risk - F.S. Lhabitant, European Finance Review v4, n1 (2000): 69-90.
  • A Note on Finance Principles, Bond Valuation, and the Appropriate Discount Rate - Steven P. Rich, Financial Practice and Education v1, n2 (Fall-Winter 1991): 99-101.
  • Tax Schedule Changes and Discount Bond Prices - Ricardo J. Rodriguez, Journal of Financial Research v14, n3 (Fall 1991): 249-53.
  • The Impact of Taxes on Discount Bond Valuation and Risk - Roger P. Bey, Financial Review v24, n4 (November 1989): 589-97.
  • The Analytics of Tax Effects in Discount Bond Valuation - Duane Stock, Financial Review v21, n4 (November 1986): 451-62.

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