Learn about unamortized bond discounts—what they mean, how they are accounted for, and what they reveal about bond pricing ...

Corporations often borrow money to help grow the company and pay the bills. To save interest expense, the issuer can "sweeten" the debt by adding an option to purchase common stock at a potential ...

Accretion of discount refers to the rise in value of a discounted instrument over time, approaching maturity. Learn how it's ...

The Internal Revenue Service and the Treasury Department said Friday that, in response to taxpayer requests for guidance, they will issue proposed regulations clarifying that the market discount on a ...

Bonds are debt obligations issued by corporations and government entities. They are typically issued at face value and most are available in $1,000 increments. The durations of bonds can be as short ...

A bond is a type of debt issued by a company or a government agency to raise money. The person who buys a bond pays the fair market value for the bond in exchange for a guaranteed amount when the bond ...

When companies issue a bond, they do so with a par value and a coupon rate: the terms that dictate the yield of the bond for potential investors. However, once they reach the market, bonds can trade ...

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 ...

The bond market tends to be relatively stable compared to the stock market. Nevertheless, there is a degree of volatility associated with bonds—especially as they change hands between investors. As ...

Discount bonds may look simple, like something is offered at a lower price, but they carry a unique mechanism that sets them apart from other fixed-income investments. These bonds allow better ...