# Deep-discount bond, deepdiscount bond, and discount bond (deep discount bond)

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- Post ID: 590769
- Modified: 2023-07-25T21:01:57+00:00
- Language: en

## Definition

A bond with a coupon - the interest rate on the bond - that is significantly lower than the market rate at the time of issuance. The difference between the market interest rate and the coupon is paid at maturity in the form of an additional amount. As a rule, the deep discounter - as the name suggests - is issued at an issue price well below one hundred percent. In mathematical terms, the issue price is roughly the value of the repayment amount and the individual coupons discounted at the market interest rate over the term. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0