deep-discount bond

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deep-discount bond

n
(Banking & Finance) a fixed-interest security that pays little or no interest but is issued at a substantial discount to its redemption value, thus largely substituting capital gain for income
References in periodicals archive ?
A variation is a Deep Discount Bond with Stepped Interest in which there is a low coupon but it increases in steps each five years.
For deep discount bonds, this means that bondholders may have tax liability that exceeds the actual cash interest income from the bonds.
18 May 2011 - Rating agency CARE today said it had upgraded the ratings on the long-term bank facilities and the deep discount bonds of Indian bridge operator Noida Toll Bridge Co Ltd to A from A-.