17 June 2011
can anybody Plzzz. give me information about deep discount bond, what are its benefits, hot to issue it everything plzzz. its very urgent Thank You
1. A bond that sells at a significant discount from par value.
2. A bond that is selling at a discount from par value and has a coupon rate significantly less than the prevailing rates of fixed-income securities with a similar risk profile.
In view of above, As the name suggests, a deep discount bond is a type of bond – this means that it is a fixed income instrument. Your investment in this bond gives you a fixed return.